In a fiery defense of Ethereum, Ripple CEO Brad Garlinghouse took center stage at the XRP Las Vegas 2024 event, questioning the SEC’s approach to both Ethereum and Ripple (XRP). Amid heightened scrutiny from the U.S. Securities and Exchange Commission (SEC), Garlinghouse criticized what he deemed a regurgitative stance by the regulatory body, particularly targeting SEC chair Gary Gensler. He went as far as labeling Gensler as an “immoral human being,” accusing him of overstepping his boundaries in regulatory oversight.
Consensys takes legal action against SEC over Ethereum
Consensys Inc., a key development component of Ethereum, has initiated legal action against the SEC in Texas, challenging the regulator’s jurisdictional encroachment regarding Ethereum. The lawsuit comes amidst the SEC’s ongoing investigation into Ethereum’s regulatory status, with the agency examining ETH-related trades to determine if they constitute investment contracts. Consensys argues that Ethereum should not be subject to SEC regulations, citing previous statements and legal precedents.
The legal battle echoes Ripple’s own struggle against the SEC, which resulted in a federal judge’s ruling last year that XRP is not a security. However, Ripple was found to have violated laws in its initial distribution to institutional customers. Consensys’ lawsuit further intensifies the debate surrounding the integration of virtual currency systems into existing financial regulations and whether they should be classified as securities.
Ethereum ETF approval hangs in the balance amid SEC probe
The SEC’s investigation into Ethereum’s regulatory status is casting a shadow over the eagerly anticipated approval of an Ethereum Exchange-Traded Fund (ETF). Investors have been eagerly awaiting the opportunity to buy Ethereum directly on the stock exchange through an ETF. However, the SEC’s ultimate decision will not only determine the fate of the ETF but also shape Ethereum’s regulatory landscape and its role as a conduit for funds in the financial sector.
The complexity of the current regulatory environment is compounded by conflicting statements from former SEC officials, such as William Hinman, who previously indicated that Ethereum was not considered a security. This tangled regulatory web presents a dilemma for both the SEC and cryptocurrency proponents, highlighting the ongoing struggle to define and regulate digital assets in the financial realm.