Ripple CEO Brad Garlinghouse has reiterated the stance of the US Securities and Exchange Commission. He believes that the regulator favors certain crypto projects.
SEC’s preference for Ethereum impacts the market
Yesterday, during DC Fintech Week’s virtual conference, Ripple’s CEO stated that Ethereum has overtaken the XRP token due to SEC regulatory approval. On the other hand, the US Securities and Exchange Commission has sued Ripple over claims that XRP is an unregistered security.
In January, Ripple filed a Freedom of Information Act request with the SEC to learn why it did not consider ETH a security. Six months later, in July, a district judge allowed the company to testify with a former SEC official who stated in 2018 that ETH was not a security.
Garlinghouse believes his company has been hurt and Ethereum’s subsequent success is at least in part due to more favorable treatment by the SEC. He stated that it affects the market, adding:
“In recent years, XRP has been the second most valuable cryptocurrency. When it became clear that the SEC had given Ethereum the green light, ETH clearly exploded.”
The SEC does not represent the interests of investors
The XRP token was the second largest cryptocurrency by market capitalization at the end of December 2017. However, this has changed. Ripple has dropped to seventh place, while Ethereum has been in second place ever since.
Garlinghouse also stated that the SEC has taken an aggressive stance against crypto with recent actions against its own company and Coinbase. The SEC says they want to protect consumers, but it doesn’t seem there, says Garlinghouse:
“You have almost 50,000 Americans holding the XRP token and trying to sue the SEC for disagreeing with their approach. That is not consumer protection”
Ripple lawsuit is extended again
The lawsuit between the two parties has been going on for a long time and this week it turned out that he will be postponed again. The SEC’s request to extend the deadline for completing the discovery phase by 2 months has been granted and has been moved to January 14, 2022.
Ripple claims that any further delay in resolving this case will seriously harm the interests of the defendants and XRP investors.
The court acknowledged this, but stated that the “additional time requested by the SEC will not affect the schedule to resolve the matter.”