Brad Garlinghouse criticized the changed attitude of the American regulator towards Ethereum

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The Ripple CEO said he disagrees with the SEC that Ethereum, after moving to Proof-of-Stake consensus, can be considered an unregistered security.

Brad Garlinghouse believes the changeThe regulator’s view of Ethereum echoes the US Securities and Exchange Commission (SEC) lawsuit against Ripple, filed at the end of 2020. According to Garlinghouse, the SEC's latest announcement about Ethereum on PoS contrasts with what former SEC Director of Corporate Finance Bill Hinman said in 2017 about Ethereum on Proof-of-Work.

 “We think ETH was a security but went unregulated due to the move to decentralization,” Garlinghouse quotes Hinman as saying.

The head of Ripple added that upon hearing thisstatement, told colleagues that XRP is an open-source, decentralized digital asset. In which Ripple controls only a very small percentage of the network validators, which means XRP is not a security. The law is not what Bill Hinman says, but if the SEC thinks so, then it is for the best for XRP.

Garlinghouse added:there is no fairness in the SEC being able to pick winners and losers in the crypto markets. After all, this is exactly what the commission did when it filed a lawsuit against Ripple in 2020, and now it says that Ethereum has become a security.

“Why would a government agency like the SECput pressure on XRP at a time when the asset was the second most capitalized? Why should regulators pick winners and losers? This is not what a democratic government should do in a capitalist state. How can the SEC say that because of the transition from proof of work to proof of stake, ethers have become securities again?” the Ripple executive was indignant.

Garlinghouse noted that although the SEC's rhetoric towards Ethereum has become hostile, he will not abandon the asset:

“Not only did I invest in XRP, but I also invested a significant portion of my money in long positions in Bitcoin and Ethereum, and other cryptocurrencies.”

Last week, the Chairman of the Commission onUS Securities and Exchange Commission (SEC) Gary Gensler warned the Ethereum community that staking ETH after the network merger may be subject to securities laws.