Ripple’s CEO, Brad Garlinghouse, is confident that the U.S. Securities and Exchange Commission (SEC) will not succeed in classifying Ethereum (ETH) as a security, just as it failed with XRP. In response to reports about the SEC’s legal actions against Ethereum, Garlinghouse pointed out the regulator’s history of losses in legal battles with the crypto industry. He also suggested that the SEC is now targeting disputes with other agencies, like the U.S. Commodity Futures Trading Commission (CFTC). Garlinghouse compared the SEC’s unsuccessful efforts with XRP to its likely defeat in classifying ETH as a security. These statements were made in response to comments made by Coinbase’s Chief Legal Officer, Paul Grewal, who opposed the classification of Ethereum as a security. Ripple’s support for Ethereum has surprised many in the crypto community, especially considering the criticism from Ethereum creator Vitalik Buterin towards XRP. Meanwhile, Ripple’s Chief Legal Officer, Stuart Alderoty, called for intervention from the U.S. Congress, urging them to stop funding the SEC and labeling its actions as “insanity.” Alderoty has been a vocal critic of the SEC’s regulatory actions under Gary Gensler’s leadership. In contrast, the Commodity Futures Trading Commission (CFTC) Chairman, Rostin Behnam, testified against the SEC’s classification of ETH as a security, stating that both Bitcoin and Ether are commodities. If the SEC succeeds in classifying ETH as a security, the chances of an Ethereum ETF being introduced would decrease. Crypto enthusiasts had hopes for an Ethereum ETF approval this year, similar to the one for Bitcoin in January. However, with the SEC’s efforts to regulate ETH, expectations for an Ethereum spot ETF launch in May are diminishing.
