Ethereum’s success is, at least in part, due to the supportive attitude of the US Securities and Exchange Commission (SEC). This was stated by the head of Ripple Brad Garlinghouse at the DC Fintech Week online conference.
Garlinghouse considers it unfair for the SEC to classify XRP as a security, but has no claims against Ethereum. According to him, the position of the regulator had a significant impact on the market.
“XRP has been the second largest digital asset in terms of market value over the past several years. When it became clear that the SEC had given the green light to Ethereum, this [нормативно-правовая] the clarity allowed the price of ETH to rise, ”he said.
In 2017, XRP did manage to briefly occupy the second line of the cryptoasset market capitalization rankings. At the time of writing, the token is in seventh place – the total value of ETH exceeds XRP by more than nine times, according to CoinGecko.
In December 2020, the SEC accused Ripple and its leaders of an unregistered sale of securities under the guise of digital tokens for $ 1.3 billion. Later, the regulator adjusted the claim, focusing on the actions of Brad Garlinghouse and Chris Larsen.
In July 2021, the company obtained a summons to the court of the ex-director of the department of corporate finance of the department, William Hinman. During the meeting, he said that he had warned Ripple about the risk of XRP being recognized as a security.
In 2018, Hinman stated that Ethereum lacks the properties inherent in securities.
The human rights organization Empower Oversight saw a possible conflict of interest in the actions of the ex-official. At the time, he was allegedly “receiving millions of dollars from his former employer, the law firm Simpson Thacher.” It was affiliated with the Enterprise Ethereum Alliance, which promoted the digital asset.
According to the founder of the law firm Deaton Law Firm, John Deaton, Hinman received $ 15 million from Simpson Thacher. The lawyer clarified that the leaders of the latter were on the board of the Enterprise Ethereum Alliance.
Btw, Bill Hinman collected $15m from his law firm — a Board member of the Enterprise Ethereum Alliance.
— John E Deaton (@JohnEDeaton1) October 22, 2021
On October 19, Garlinghouse was interviewed by Fox Business reporter Charlie Gasparino. The head of Ripple admitted that the conflict with the SEC did not affect the company’s business in the best way – it cannot do business in the United States. At the same time, he stressed that the year outside the country is “amazing”.
Garlinghouse noted that the Commission is trying to drag out the proceedings – the interrogation of a number of witnesses has already moved for January 2022. Ripple, on the other hand, seeks to resolve the issue in court as quickly as possible.
“It seems to us quite obvious that we did not violate the American legislation on transactions with securities. XRP is not a security and we think we will ultimately prove it in court. Therefore, we want to close the case as soon as possible, ”he explained.
The Ripple chief also added that it is the SEC that “chooses the winners and losers” of the cryptocurrency industry. So he commented on the approval of the launch of the Bitcoin futures-ETFobtained by ProShares.
In September, Garlinghouse supported Coinbase in a conflict with the Commission. The regulator warned the bitcoin exchange about the prosecution in case of launching crypto-saving Lend accounts.
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