In a recent important development in the cryptocurrency industry, the ongoing lawsuit involving the U.S. Securities and Exchange Commission (SEC) and the Ethereum (ETH) has turned into an intriguing case in the sector.
Faced with the legal battle, the CEO of Ripple, Brad Garlinghouse, shared his optimistic thoughts on the case, highlighting a setback for the regulator. The comments come amid reports that the SEC is seeking to classify Ethereum “as a security” through its ongoing lawsuit with the market's second-largest cryptocurrency.
The CEO of Ripple, whose native token is the XRP, recalled the victories against the SEC, which claimed the sale of the cryptocurrency classifying it as a security, predicting that the regulator will also “lose the war against ETH, just as it lost against XRP”.
“The SEC has provoked fights with the industry and is losing badly in court. They are now fighting other regulators like the CFTC and falling behind their international counterparts. At what point will the SEC realize that it will lose the war against ETH, just as it lost against XRP?” said Garlinghouse.
The SEC picked fights with the industry and is losing badly in the Courts. They're now fighting fellow regulators like the CFTC, and falling behind international counterparts. At what point will the SEC realize they will lose the war against ETH just as they lost against XRP? https://t.co/rG66npldf4
— Brad Garlinghouse (@bgarlinghouse) March 21, 2024
It is worth remembering that the founder and CEO of one of the main cryptocurrency exchanges Coinbase, Brian Armstrong, recently stated that the Ethereum (ETH) is a commodity, just like Bitcoin (BTC). In an interview with Bloomberg, Armstrong stated that the US Securities and Exchange Commission (SEC) should soon approve spot Ethereum exchange-traded funds (ETFs). However, Armstrong also highlighted the ongoing conflict between federal agencies regarding the classification of Ethereum as a security.
Ethereum Foundation Under Investigation
The Ethereum Foundation, known for being one of the cornerstones in the development of the second largest blockchain in terms of market capitalization, the Switzerland-based non-profit entity is now under the spotlight of a government investigation. The specifics of this investigation, which remain under veils of confidentiality, began to come to light through a publication on the organization's GitHub dated February 26, 2024, revealing the beginning of an investigation by an as yet unidentified government body.
This development comes at a transformative time for Ethereum, which after its launch in 2015 through an Initial Coin Offering (ICO), recently underwent a significant technical update dubbed Dencun. This scenario adds an additional layer of complexity to the already intricate Ethereum ecosystem, raising questions about the possible implications of such an investigation.
