Ripple CEO Brad Garlinghouse told that Ethereum (ETH) was given the ‘green light’, allowing it to override XRP tokens.
The revelation was made at a virtual DC Fintech Week meeting yesterday.
Of note, the United States (US) Securities and Exchange Commission (SEC) has been putting Ripple under close scrutiny since the suit was issued in December 2020.
The SEC’s actions are closely related to Ripple’s allegations of selling XRPs as non -securities assets. As a result, Ripple has filed a Freedom of Information Act application to the SEC, demanding an explanation of why the agency does not value ETH as a security.
On Oct. 11, a confession from a former SEC official revealed that Ethereum was not a securities asset. The statement of the former SEC official is still the same as the one decided in 2018.
Garlinghouse found the SEC’s action against his company too harsh and Ethereum’s subsequent success was seen as biased. Due to that, the market bears the impact of:
“A few years ago, XRP was the second most valuable digital asset. Because the SEC gave ETH a chance, the explanation was very helpful and of course the asset went crazy. ”
For the record, XRP was the second largest digital asset after Bitcoin (BTC) in 2017. Currently, the asset is ranked 7th.
Garlinghouse also described the SEC as too aggressive Coinbase, and belittled the agency's claim that it allegedly wanted to protect XRP investors: "There are nearly 50,000 U.S. residents who are XRP investors and they want to sue the SEC for trying to 'protect them.'"
In the latest development of the SEC-Ripple lawsuit, the court has agreed to extend the discovery period until January 14, 2022.
This invites Ripple’s concern because the lengthy trial will hurt the interests of defendants and XRP investors.
At the time of writing, XRP is trading at $ 1.10, down over 3% in 24 hours.
