Brad Garlinghouse, CEO of Ripple, has shared his thoughts on the state of the crypto market and regulations, and a grudge appears to have surfaced over the financial regulator’s approach to Ethereum.
At the DC Fintech Week virtual conference on October 21, the Ripple boss stated that Ethereum had received a regulatory green light that enabled him to outperform his company’s XRP token.
The US Securities and Exchange Commission is prosecuting Ripple for allegations that XRP is an unregistered security. In January, Ripple filed a petition for the Freedom of Information Act with the SEC asking it to learn why it doesn’t consider ETH 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 clearly believes that his company was made tough and that Ethereum’s subsequent success was at least in part due to more favorable treatment by the SEC. He stated that this is affecting the market, adding:
“In the past few years, XRP has been the second most valuable digital asset. When it became clear that the SEC had given ETH a hall pass, ETH obviously exploded and this clarity helped.
XRP was the second largest crypto asset by market capitalization at the end of December 2017. It has currently slipped to seventh place, while Ethereum has been in second place since then.
Garlinghouse also stated that the SEC has taken an aggressive stance on crypto with recent actions against his own company and Coinbase. Speaking of Ripple’s battle with the Financial Regulator, he said the SEC claims to protect consumers, but:
“You have nearly 50,000 US people who own XRP trying to sue the SEC for ‘protecting it.'”
Earlier this month, a U.S. district judge ruled that anyone holding the company’s XRP token cannot be a defendant in the lawsuit.
Related: XRP buyers support Ripple, arguing that it is not a security
The SEC’s motion to extend the deadline for completing investigations in its ongoing proceedings with Ripple Labs and its executives was granted and postponed to January 14, 2022.
Ripple claims that any further delay in resolving this case “will seriously harm the interests of the defendants and XRP owners.”
The court acknowledged this but stated that the “additional time requested by the SEC will not affect the timeline to settle the case.”