The Ripple CEO, Brad Garlinghouse, has come forward in support of Ethereum amidst increased scrutiny from the U.S. Securities and Exchange Commission (SEC). In events held in Las Vegas, Garlinghouse challenged the SEC's stance on Ethereum and Ripple, questioning the effectiveness of their regulatory approach. His comments were made during a discussion at the XRP Las Vegas 2024 event moderated by Michael Arrington, founder of Arrington Capital.

The debate on whether Ethereum should be classified as a security has intensified following remarks made by MicroStrategy CEO Michael Saylor, who labeled ETH and other major cryptocurrencies as unregistered securities. In contrast, Garlinghouse has consistently advocated for Ethereum, highlighting Ripple's victory against the SEC when a judge ruled that XRP was not a security.

Garlinghouse's criticism of SEC Chair Gary Gensler was shared on social media by pro-crypto journalist Eleanor Terrett, where he described Gensler as being overbearing in his role.

Consensys Inc., a key player in Ethereum's development, has taken legal action against the SEC in response to their attempts to regulate ETH as a security. The company argues that Ethereum should not be subject to SEC oversight based on previous statements made by the regulator.

The ongoing SEC investigation is also impacting the approval of an Ethereum ETF that would allow investors to purchase Ethereum on the stock exchange. The outcome of the SEC's decision will greatly influence Ethereum's regulatory future and its role as a financial instrument.

Former SEC official William Hinman's past statements declaring Ethereum as not a security further complicate the current regulatory landscape, posing a challenge for both the SEC and cryptocurrency proponents.