Ripple chief executive officer Brad Garlinghouse and chief legal officer Stuart Alderoty have expressed support for Ethereum as the U.S. Securities and Exchange Commission opened investigations against Ethereum Foundation, waging a legal campaign to classify Ether (ETH) as security.

Ripple executives backing Ethereum is a surprising move for some crypto participants considering anti-XRP replies from Ethereum creator Vitalik Buterin when the SEC filed a lawsuit against Ripple in 2020.

Ripple CEO Brad Garlinghouse Says SEC to Lose War Similar to XRP

The US SEC has faced backlash from the crypto community and congressmen for probing companies related to Ethereum, including Ethereum Foundation. The move is considered a regulatory action for classifying the second-largest crypto Ether (ETH) as a security. Experts say it’s a political move after Prometheum, the only U.S. SEC-registered crypto securities platform, plans to custody Ethereum (ETH).

Ripple CEO Brad Garlinghouse said the SEC is losing badly in the courts as it picks fights with the crypto industry. Now, there are “fighting fellow regulators like the CFTC, and falling behind international counterparts.” He expressed concerns over the SEC failing to realize that they will lose against ETH as they did against XRP.

Also Read: Robert Kiyosaki Slams Peter Schiff For Having ‘Little’ Financial Knowledge

Ripple CLO Stuart Alderoty Calls for Congress to Intervene

Stuart Alderoty reacted to Brad Garlinghouse’s post on X and further pointed out that the US Congress must intervene. He requests the US Congress to stop funding the SEC, calling the action “insanity.”

Ripple CLO has been a major critic of the regulatory actions and policies of the U.S. SEC under the leadership of Gary Gensler. Recently, he lambasted the SEC for misleading the court and gross abuse of power assigned by the U.S. Congress in the Debt Box case.

Also Read: Ripple Vs SEC Update: Judge Torres Considers Extending XRP Lawsuit Fair Enough

SEC Conflicts of Interest with CFTC on Ethereum

Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam testified before the House Committee on Agriculture, contradicting the decision by the SEC’s claim on classifying ETH as security. He also disagreed with Prometheum’s plan to offer ETH custody services and said, “Both Bitcoin and Ether are commodities.”

Former CFTC Commissioner Brian Quintenz highlighted that the SEC acknowledged Ethereum’s status as a non-security and outside its jurisdiction and the current shift is confusing and harming the investors. While he expressed concerns about potential delays or denials of Ethereum ETFs by the SEC, the earlier approval of Ethereum futures ETFs by the SEC makes its decision as “illegal”.

Also Read: BTC and ETH Options Worth $2.6B Set to Expire, Bitcoin Traders Buying Calls for $76K

The post Breaking: Ripple CEO and CLO Backs Ethereum and CFTC, Say US SEC to Lose appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am