Ripple CEO Believes, SEC Assisted Ethereum in Surpassing XRP as the Second Most Valuable Cryptocurrency

Kavya  |  Oct 22, 2021

During the DC Fintech Week virtual conference, Ripple CEO claimed that Ethereum has obtained governmental permission, allowing it to surpass his company's XRP currencies.

The Ripple CEO Says His Business Was Handled Unfairly, Giving Ethereum the Advantage

On October 21, Ripple CEO said during the DC Fintech Week virtual conference that Ethereum has received regulatory approval allowing it to outperform his company’s XRP coins.  

The Securities and Exchange Commission of the United States has been investigating Ripple on allegations that XRP is unregistered security. 

Ripple filed the Freedom of Information Act request with the SEC in January, asking to know why the SEC did not consider ETH to be a security. 

Six months later, in July, a district court granted the firm permission to depose a former SEC employee who had stated in 2018 that ETH was not a security.

Garlinghouse believes that his company has been treated unfairly and that Ethereum's subsequent success is due, at least in part, to more favorable SEC treatment. 

He remarked that it is having an impact on the market, and he went on to say:

“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH has kind of exploded and that clarity has helped.”

Garlinghouse Talks About the Conflict Between Ripple and the Securities Regulator

In late December 2017, XRP was the second-largest cryptocurrency by market capitalization. It is now ranked seventh, whereas Ethereum has been in second place since its inception. 

The CEO of Ripple also said that the SEC has been aggressively pursuing cryptocurrency, citing recent proceedings against his own business and Coinbase. 

In response to Ripple’s legal struggle with the SEC, he stated that the SEC professes to be safeguarding customers, but:

“You have nearly 50,000 U.S. people who hold XRP who are trying to sue the SEC for ‘protecting them’.”

A U.S. district court decided earlier this month that anyone owning the company's XRP coin may not be named as a defendant in the action.

The SEC’s request to extend the time for completing discovery in its continuing action against Ripple Labs and its officials are granted, and the date has been moved out to January 14, 2022. 

Any additional delay in setting this matter, according to Ripple, will cause severe harm to the interests of the defendants and XRP holders.”

Although the court accepted this, it said that the “additional time sought by the SEC will not affect the schedule to resolve the case.”

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