Ripple CEO Predicts Setback For U.S. SEC In Ethereum Case

SEC logo and several crypto coins

The legal struggle between the United States Securities and Exchange Commission (SEC) and Ethereum (ETH) has emerged as a fascinating case in the cryptocurrency scene, with numerous analysts anticipating potential outcomes.

Ripple CEO Warns US SEC’s Inevitable Defeat

As the struggle continues, Ripple Labs’ Chief Executive Officer (CEO), Brad Garlinghouse, has offered his hopeful observations on the case, as well as a bold prediction in favor of the Ethereum ecosystem. His encouraging observations come in the wake of allegations that the SEC is aiming to categorize Ethereum “as a security” as part of its legal conflict with the digital currency.

According to Brad Garlinghouse, the US regulatory authority would most likely “lose its war against Ethereum” – the second largest cryptocurrency asset. According to Garlinghouse, the Commission’s previous “attempts to include the cryptocurrency industry in legal battles have resulted in severe court losses” over time.

As a result, the agency is now “lagging behind its foreign counterparts” and “competing with other regulators” like the US Commodity Futures Trading Commission (CFTC). The Ripple CEO then asked, “When will the SEC realize that it cannot continue fighting to categorize Ethereum as a security, as it did with XRP?”

It is worth noting that Coinbase submitted self-certifications to the CFTC on March 7, which might pave the way for Bitcoin Cash (BCH), Dogecoin (DOGE), and Litecoin (LTC) futures Exchange-Traded Funds (ETFs), if the CTFC has no objections against it.

Ripple’s Partial Victories Against the SEC

Ripple initially gained a partial victory in its action against the government when Judge Analisa Torres ruled in July last year that programmatic XRP sales do not fulfill the third prong of the Howey Test. Three months later, the SEC’s request for an interlocutory appeal against the programmatic sales order was dismissed by a US judge.

The order prevents the SEC from filing an appeal until the pending SEC v. Ripple action is resolved. The conclusion of this issue is expected to have a significant influence on the regulatory environment in the United States as well as the cryptocurrency landscape in general.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.