Brad GarlinghouseCEO of Ripple, recently expressed his expectations regarding the future of cryptocurrency exchange-traded funds (ETFs), focusing specifically on ether (ETH) and the regulatory approach of the US Securities and Exchange Commission (SEC). Speaking of World Economic Forum at Davos, Garlinghouse emphasized the inevitability of other cryptocurrencies, such as ether, following bitcoin’s path to ETF approval in the United States, although he did not specifically predict a similar path for Ripple’s XRP.
Garlinghouse’s comments come on the heels of the SEC’s approval of several bitcoin ETFs, which he says sets a precedent for similar cryptocurrency investment products. However, he expressed concern about the SEC’s current regulatory strategy under Chairman Gary Gensler, describing it as a “political liability” and not in the best interest of the long-term growth of the US economy. He criticized Gensler’s repeated actions and expectations for mixed results, envisioning a change in SEC leadership as beneficial to the American people.
Ripple’s CEO highlighted the US judiciary’s pressure on the SEC, noting that approval of the Bitcoin ETF came only after a US court criticized the SEC’s approach as arbitrary and capricious. This legal battle sets a troubling precedent for future ETF approvals that may require similar court interventions.
Garlinghouse also discussed the significant role of stablecoins like USDT and USDC, advocating for regulatory clarity around them. He looks forward to other participants in the stablecoin market, emphasizing their importance in solving real-world needs.
Ripple’s relationship with US regulators, particularly the SEC, has been complicated, marked by legal challenges over the classification of XRP as a security or currency. The SEC filed a lawsuit against Ripple Labs Inc., its CEO and co-founder in December 2020, alleging that XRP is an unregistered security. This ongoing legal battle is a significant controversy in the cryptocurrency community.
In conclusion, Garlinghouse’s statements reflect broader sentiment in the crypto industry regarding regulatory challenges and the potential for broader adoption of cryptocurrency ETFs in the US market. His insights offer a critical perspective on the SEC’s current position and its implications for the future growth and stability of the cryptocurrency market.
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