Ripple CEO Brad Garlinghouse counters and emphasizes: There is no Ethereum decentralization test for XRP

<p> <strong> Ripple CEO Brad Garlinghouse counters and emphasizes: There is no Ethereum decentralization test for XRP </strong> </p>

Brad Garlinghouse from Ripple reacts to Ethereum-Test claims of the SEC

Brad Garlinghouse, CEO von Ripple, reacted to a statement by the Fox Business panelist and journalist Charles Gasparino. Gasparino claimed that the US Securities and Exchange Commission (SEC) believed that XRP exists the so-called "decentralized Ethereum test". Garlinghouse contradicted this claim and explained: "There is no Ethereum decentralization test in the Sec. That is fiction."

Gasparino and announced the end of the legal dispute between the Sec and Ripple Labs. In December 2020, the SEC filed a lawsuit against Ripple and claimed that the company had violated the US laws of securities by selling XRP worth $ 1.3 billion without registering as security. The agency argued that the managers of Ripple ignored previous warnings and did not provide the investors the necessary information.

Ethereum or Howey test?

The SEC supports its case against XRP on the Howey test, a legal standard that is derived from a judgment of the Supreme Court of 1946 on the SEC against Howey. This test defines a security as an investment in which the profit expectations mainly result from the efforts of third parties. The SEC claims that XRP fulfilled these criteria at the time of its public offer to both investors and institutions, although the authority had previously decided that Ethereum does not constitute security.

William Hinman, former director of the SEC department for corporate financing, expressed that Ether does not meet the criteria of security after the Howey test. This view was referred to as an "Ethereum test". The idea behind it is that there is no clear "issuer" in a decentralized crypto project, which means that a party has no access to insider information or an unfair information advantage over other users.

emails published in connection with this discussion in 2023 showed that the position of the Sec in Ethereum was not clear. An email dated June 12, 2018 by the former SEC director for trade and markets, Brett Redfearn, expressed concerns about the status declaration of Ethereum as security. Redfearn wrote: "As written, the language remains vague about whether ETH is a security. If you want to make a positive explanation that it is not a security, the language could be clearer."

A SEC official later said in an email that the agency is "not necessary to regulate Ether", which was indicated in 2018. Ripple had published these documents as part of his right defense.

Current XRP winning trends according to Sec-News

The market movements of XRP show optimistic development. The XRP community reports 13.2 % in the last 24 hours, with a price of just over $ 2.5 according to Coingecko data. A crypto analyst that is known as "Steph" on X suspects that XRP has completed its latest downward cycle and could continue to rise in the coming days.

Another market observer found that XRP has formed a higher level and thus signaled the potential for a sustainable bullish market trend. Price forecasts indicate that XRP could reach up to $ 2.79 to $ 2.92 before further consolidation occurs.

FAZIT

The legal and regulatory developments around Ripple and XRP remain complex and complex. The discussion about the status of XRP compared to Ethereum and the possible effects on the cryptom market are still closely observed by analysts and investors.