Ripple CEO Gives Thumbs Up to XRP ETF, Signaling Progress
In a recent interview on Bloomberg TV, Ripple CEO Brad Garlinghouse discussed the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) and expressed Ripple’s positive stance on the potential launch of XRP exchange-traded funds (ETFs). Here are the key points from the interview.
Navigating the SEC Dispute: “We Won Against the SEC”
Garlinghouse highlighted the SEC’s shift towards “regulation through enforcement” in Ripple’s legal dispute. He emphasized that Ripple has consistently called for clearer rules and regulations in the cryptocurrency industry. He expressed satisfaction with the court’s decision in the Ripple case, stating that the court determined that XRP is not a security. Garlinghouse firmly stated, “The SEC has lost consistently. They lost the Ripple case on everything they cared about.” However, he acknowledged that the SEC may appeal and mentioned the uncertainty surrounding the timeline for resolution. He believes that the dispute will end when the SEC realizes their consistent losses or when Congress intervenes and introduces new legislation.
Conformity of XRP ETFs
Garlinghouse addressed the anticipation of the Ripple community regarding the potential launch of XRP ETFs. In a previous interview, he declined to comment on their launch, stating that XRP ETFs were not the company’s primary focus at that time. However, he now welcomes the possibility of XRP ETFs and draws parallels to the early days of the stock market. He said, “We would certainly welcome it. It only makes sense there will be other ETFs too… the earliest days of the stock market. You want to typically think about diversifying risk.” Garlinghouse expressed Ripple’s openness to multiple ETFs for different tokens, foreseeing a range of ETFs and even baskets to mitigate risk.
Ripple’s Regulatory Compliance
During the discussion, Garlinghouse emphasized Ripple’s commitment to compliance and regulatory engagement in the cryptocurrency industry. He discussed Ripple’s acquisitions, particularly Standard Custody, and highlighted the importance of custody solutions for institutional success in the crypto sphere. Garlinghouse stated, “Everything we have done at Ripple has been compliant first… this year, I think has to be a compliance-first mindset for all of the crypto industry.”
Ripple’s Advocacy in Political and Regulatory Leadership
Garlinghouse stressed the importance of the United States regaining a leadership position in crypto regulation. He mentioned Ripple’s participation in a super PAC alongside Andreessen Horowitz and Coinbase to support pro-crypto candidates who advocate for constructive regulation and innovation. Garlinghouse also addressed the regulatory challenges faced by the crypto industry, specifically Senator Elizabeth Warren’s stance on anti-money laundering (AML) and know-your-customer (KYC) laws. He argued that Warren has it wrong and stated that KYC and AML are not confusing rules. He debunked the notion that the crypto industry circumvents these regulations and emphasized the industry’s commitment to compliance.
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Ripple (XRP)