Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty support Ethereum and CFTC in opposing the US SEC.
As the U.S. Securities and Exchange Commission opened investigations against the Ethereum Foundation, which is waging a legal campaign to classify Ether (ETH) as security, Ripple chief executive officer Brad Garlinghouse and chief legal officer Stuart Alderoty have both expressed support for Ethereum.
In light of Vitalik Buterin’s anti-XRP remarks in response to the SEC’s 2020 lawsuit against Ripple, the support of Ethereum by Ripple executives is an unexpected development for some crypto participants.
Brad Garlinghouse: SEC to Lose War Like XRP
Congressmen and the crypto community have criticized the SEC for investigating Ethereum-related organizations, including the Ethereum Foundation.
The move is seen as a regulatory action for designating the second-largest cryptocurrency, Ether (ETH), as a security.
Experts believe it is a political move, after Prometheum, the only SEC-registered crypto securities platform in the United States, announced plans to custody Ethereum (ETH).
According to Ripple CEO Brad Garlinghouse, the SEC is losing severely in court as it engages in disputes with the crypto industry.
Presently, they are “fighting fellow regulators like the CFTC, and falling behind international counterparts.”
He was concerned that the SEC would be unable to recognize that it would suffer the same defeat against ETH as it did against XRP.
Ripple CLO Stuart Alderoty Urges Congressional Intervention
Stuart Alderoty responded to Brad Garlinghouse’s post on X, emphasizing that the US Congress must intervene.
He urges that the US Congress stop funding the SEC, calling the action “insanity.”
Ripple CLO has been an outspoken critic of the U.S. SEC’s regulatory policies and actions during Gary Gensler’s tenure.
In the Debt Box case, he recently criticized the SEC for misleading the court and egregiously abusing the authority granted to it by the U.S. Congress.
SEC Conflicts of Interest with CFTC on Ethereum
Commodity Futures Trading Commission (CFTC) chairman Rostin Behnam testified before the House Committee on Agriculture, refuting the SEC’s argument that ETH is a security.
Furthermore, he expressed dissent towards Prometheum’s proposition to provide ETH custody services, stating, “Both Bitcoin and Ether are commodities.”
Brian Quintenz, a former commissioner of the CFTC, emphasized that the SEC recognized Ethereum as a non-security and therefore outside its purview; the current transition is perplexing and detrimental to investors.
Although he voiced concerns regarding possible postponements or rejections of Ethereum ETFs by the SEC, the agency’s prior approval of Ethereum futures ETFs renders its current stance “illegal.”
