Ripple’s CEO, Brad Garlinghouse, Shares Thoughts on SEC Lawsuit and the Launch of XRP ETF
Brad Garlinghouse, the CEO of Ripple, remains optimistic about the resolution of the company’s legal dispute with the U.S. Securities and Exchange Commission (SEC). In a recent interview on Bloomberg TV, Garlinghouse discussed Ripple’s proactive stance on the potential launch of XRP exchange-traded funds (ETFs).
Regarding the SEC’s approach to regulation, Garlinghouse highlighted the SEC’s “regulation through enforcement” shift and emphasized Ripple’s call for clearer rules in the crypto space. He expressed satisfaction with the recent court decision that determined XRP is not considered a security. However, he acknowledged the SEC’s potential appeal and stated that the resolution depends on the SEC recognizing consistent losses or Congress intervening with new legislation.
In a change of perspective, Garlinghouse revealed that Ripple is now open to the idea of launching XRP ETFs. Previously, he had refused to comment on their launch, stating that they were not the company’s primary concern. However, Garlinghouse now sees the potential for diverse ETF options and risk mitigation through baskets. He believes that welcoming different ETFs for various tokens makes sense and compares it to diversifying risk in the stock market.
Garlinghouse also emphasized Ripple’s commitment to compliance and regulatory engagement. He mentioned Ripple’s acquisitions, particularly Standard Custody, and highlighted the importance of custody solutions for institutional success in the crypto industry. He stated that compliance should be the industry’s top priority and called for a compliance-first mindset.
Addressing the broader regulatory landscape, Garlinghouse stressed the need for the U.S. to lead in crypto regulation. He mentioned Ripple’s participation in a super PAC, along with Andreessen Horowitz and Coinbase, to support pro-crypto candidates advocating for constructive regulation and innovation. He challenged Senator Elizabeth Warren’s stance on AML and KYC laws, asserting that the industry is committed to compliance and does not circumvent these regulations.
In this insightful interview, Garlinghouse provides valuable insights into Ripple’s legal journey, its evolving views on XRP ETFs, and its broader commitment to shaping a compliant and innovative crypto landscape.