KEY POINTS
- Ripple's Brad Garlinghouse urged Trump to help provide clarity regarding Ether's non-security status
- Gary Gensler repeatedly refused to provide clarity on $ETH's status as a security or a commodity, even under oath
- Trump has only talked about Bitcoin, but has also expressed support for the broader crypto space
Celebrations over Donald Trump's victory are still underway in the cryptocurrency community, but one of the biggest issues in the industry has yet to be resolved: is Ethereum (ETH) a commodity or a security?
Ether, the native token of the Ethereum blockchain, has yet to be specifically identified by the U.S. Securities and Exchange Commission (SEC) as a commodity even after the regulator approved Ethereum exchange-traded funds (ETFs). With a president-elect considered "pro-crypto" and poised to enter the White House early next year, will Ether holders finally get the clarity they've been asking for?
Ripple CEO Advocates for $ETH Clarity
Brad Garlinghouse raised the matter on Wednesday in his congratulatory statement for the Republican presidential nominee who secured the 270 electoral votes needed for the presidency.
While on top of Garlinghouse's "fodder" list for Trump's first 100 days in office is the removal of SEC Chair Gary Gensler, he also made sure to demand clarity for Ethereum.
.@realDonaldTrump, Congratulations!
— Brad Garlinghouse (@bgarlinghouse) November 6, 2024
Some fodder for your first 100-day checklist to get things moving:
- Fire Gensler. Day 1, no delays.
- In his place, appoint Giancarlo, Brooks, or Gallagher – they’d be massive upgrades in rebuilding the rule of law (and reputation) at the…
"And last but not least, can we get some clarity ... similar to XRP and BTC (Bitcoin), that ETH is not a security, right?!" he wrote.
Notably, Ethereum prices have been on the uptrend in the past 24 hours, pulled up by Bitcoin's ascent to new all-time highs.
How the SEC Has Handled $ETH Issue So Far
The SEC under Gensler has refused to provide clarity regarding Ether's status even after it approved ETH ETFs earlier this year. Gensler repeatedly refused to directly answer lawmakers' questions on the crypto asset's status during Congress hearings.
Following a legal filing by Consensys to reveal that the SEC already recognized Ethereum as a security last year – before Gensler was first asked by Congress to clarify the matter – the SEC chair continued to dodge ETH-related questions.
In June, the Wall Street regulator dropped its investigation into the Ethereum blockchain but made sure to emphasize that the battle isn't over. It said that its notice regarding the end of its Ethereum probe "must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the staff's investigation."
JUST IN: The SEC suspends investigation into Ethereum 2.0. $ETH is a commodity.
— Milk Road (@MilkRoadDaily) June 19, 2024
We won. 🥛 pic.twitter.com/NLy2vLzr1H
For some industry experts, the SEC already implicitly acknowledged that ETH is a commodity after it approved Ether ETFs. However, the ETH community wants specific identification from the SEC, something Gensler refused to provide in a CNBC interview just a week before Ethereum ETFs were approved.
What Will Trump Do?
Trump has only spoken about Bitcoin, and broadly, the crypto industry. He has signaled support for BTC mining, but has not yet mentioned other altcoins such as ETH or Solana (SOL) and XRP.
On the other hand, many industry analysts and observers believe crypto will fare better under a Trump presidency, and while it is unclear whether he can legally "fire" Gensler, he may trigger some changes within the agency. In turn, such reforms may lead to clarity for Ethereum's status once and for all.
