Are Ethereum And XRP Securities? Ripple CEO Weighs In On The Debate

As a seasoned crypto investor with a keen interest in the regulatory landscape, I find Brad Garlinghouse’s recent comments on the SEC’s approach to cryptocurrencies, particularly XRP and Ethereum, quite intriguing. While the legal battle between Ripple and the SEC regarding XRP’s security status is no secret, it’s worth noting that Garlinghouse has consistently maintained his stance that XRP is not a security. His latest comments at the Las Vegas fireside chat, as reported by Eleanor Terrett, are in line with this viewpoint.


The US Securities and Exchange Commission (SEC) has had ongoing disputes with the crypto industry, particularly regarding the classification of certain cryptocurrencies as securities. Ripple CEO Brad Garlinghouse openly expressed his disagreement with this stance during a recent interview. He stated that the SEC’s classification of both XRP and ETH as securities is “mistaken.”

Garlinghouse: XRP And ETH Are Clearly Not Securities

In a social media post by Fox Business journalist Eleanor Terrett, Garlinghouse shared his perspective on the issue during a conversation at a Las Vegas event aimed at exploring the future of digital currencies.

NEW: The Ripple CEO, Brad Garlinghouse (@bgarlinghouse), asserts that Ethereum‘s Ether ($ETH) and Ripple’s XRP are not securities. He strongly criticizes the SEC for this assessment and labels its chair, Gary Gensler, as “unethical.”
— Eleanor Terrett (@EleanorTerrett) May 4, 2024

As a researcher studying the regulatory landscape of cryptocurrencies, I can confirm that the long-standing dispute between Ripple and the Securities and Exchange Commission (SEC) over the securities classification of XRP, Ripple’s native digital asset, has garnered significant attention. Likewise, more recent developments suggest that SEC officials are exploring the potential securities status of Ethereum.

As a researcher, I’ve noticed that Ripple’s co-founder, Brad Garlinghouse, and the company have consistently maintained their position that XRP is not a security. In recent statements, Garlinghouse has reaffirmed this stance and shared some insights that are sure to excite crypto enthusiasts and investors alike.

As a analyst, I would rephrase it as follows: I’d like to clarify that according to Garlinghouse, XRP and ETH are not considered securities by him. Additionally, he has expressed strong criticism towards SEC Chairman Gary Gensler, labeling him as “unethical.” This assessment seems to stem from Gensler’s stance on the cryptocurrency industry, which some investors believe is unfairly critical.

Are Ethereum And XRP Securities? Ripple CEO Weighs In On The Debate

The Future Of Crypto Regulation

At a pivotal moment, Garlinghouse’s remarks carry significant weight as global regulators intensely scrutinize the cryptocurrency sector. The crypto marketplace still lacks a definitive regulatory structure, prompting regulatory bodies worldwide to establish clear guidelines.

It’s intriguing that among all cryptocurrencies, XRP currently holds the distinction of having the most definite regulatory standing in the US. A recent federal court decision classified the sale of XRP to individual investors as non-securities transactions. Nevertheless, the legal battle between the parties is ongoing with respect to the sales made to institutional investors. The majority of market observers anticipate that this dispute will ultimately lead to a resolution through a settlement.

As a researcher observing the cryptocurrency market at present, I can report that XRP is currently priced at around $0.53. Despite this price point, some investors and crypto analysts have expressed doubts about its potential due to its persistent inability to surpass the $1 mark over the past two years. Consequently, they have begun to question its viability as an investment opportunity.

Based on a report from Fox Business, SEC Chair Gensler may consider Ethereum, the second largest cryptocurrency, as a security using the Howey Test. Such a classification could have ripple effects and potentially hinder Ethereum’s growth, along with other cryptocurrencies.

Garlinghouse expresses his concerns over how the SEC manages cryptocurrency regulations but remains hopeful that regulatory frameworks will emerge in places other than the US, particularly in the European Union.

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2024-05-05 16:41