Ripple’s CEO Says the SEC Helped Ethereum Outperform XRP

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Ripple's CEO Says the SEC Helped Ethereum Outperform XRP
Ripple's CEO Says the SEC Helped Ethereum Outperform XRP

Ripple’s CEO Brad Garlinghouse has given his views on the cryptocurrency market and regulatory status, and the financial regulators’ stance on Ethereum appears to have surfaced.

Ripple’s CEO Blames the SEC for Ethereum Surpassing XRP By Market Cap

In Garlinghouse’s speech at the DC Fintech Week virtual conference on October 21, Ripple’s boss said that Ethereum has received a regulatory green light that will allow it to outperform his company’s XRP token.

The US Securities and Exchange Commission is prosecuting Ripple because XRP is an unregistered security. In January of this year, Ripple filed a petition for the Freedom of Information Act with the SEC asking for understanding why it doesn’t treat ETH as a security. Six months later, in July, a district judge allowed the company to remove a former SEC official who declared in 2018 that ETH was not a security.

Garlinghouse apparently believes his company worked hard on it, and Ethereum’s subsequent success is at least in part due to more favourable treatment by the US Securities and Exchange Commission. 

He stated that this is having an impact on the market as XRP has been the second most valuable digital asset in recent years and It is clear that the SEC has given ETH a passport and ETH has clearly exploded.

At the end of December 2017, XRP was the second largest crypto asset by market capitalization. It has now slipped to seventh place, while Ethereum has remained in second place since then.

Garlinghouse also stated that the U.S. Securities and Exchange Commission recently took action against his own company and Coinbase and took a positive stance on cryptocurrencies. 

Speaking of Ripple’s battle with financial regulators, he mentioned the SEC claims to protect consumers, but nearly 50,000 Americans who own XRP are trying to sue the SEC to protect them.

Earlier this month, a U.S. district judge ruled that individuals holding the company’s XRP tokens could not be part of the lawsuit as defendants.

SEC Plans to Extend the Lawsuit to 2022

The regulator’s request to extend the deadline for completing the discovery in the ongoing lawsuit with Ripple Labs and its executives has been approved and postponed to January 14, 2022.

Ripple claimed that any further delay in resolving the case would seriously harm the interests of the defendants and the XRP owners.

The court acknowledged this but stated that the additional time requested by the SEC will not affect the timeline for the settlement of the case.