Ripple CEO Garlinghouse Foresees Ether ETF Approval, Critiques SEC's Approach
Zach Anderson Jan 18, 2024 09:50
Ripple CEO Brad Garlinghouse predicts the approval of an Ether ETF by the SEC, critiquing the commission's approach under Gary Gensler as a political liability and detrimental to the U.S. economy's growth.
Brad Garlinghouse, the CEO of Ripple, recently voiced his expectations regarding the future of cryptocurrency exchange-traded funds (ETFs), particularly focusing on Ether (ETH) and the U.S. Securities and Exchange Commission's (SEC) regulatory approach. Speaking at the World Economic Forum in Davos, Garlinghouse emphasized the inevitability of other cryptocurrencies, like Ether, following Bitcoin's path towards ETF approval in the United States, despite not explicitly predicting a similar path for Ripple's XRP.
Garlinghouse's comments come in the wake of the SEC's approval of several Bitcoin ETFs, which he believes sets a precedent for similar cryptocurrency investment products. However, he expressed concern over the SEC's current regulatory strategy under Chair Gary Gensler, describing it as a "political liability" and not in the best interest of the U.S. economy's long-term growth. He criticized Gensler's repeated actions and expectations for different outcomes, foreseeing a change in SEC's leadership as beneficial for the American people.
The Ripple CEO highlighted the U.S. justice system's pressure on the SEC, noting that the approval of Bitcoin ETFs came only after a U.S. court criticized the SEC's approach as arbitrary and capricious. This legal battle sets a concerning precedent for future ETF approvals, which might require similar judicial interventions.
Garlinghouse also discussed the significant role of stablecoins like USDT and USDC, advocating for regulatory clarity around them. He expects other entrants in the stablecoin market, emphasizing their importance in solving real-world needs.
Ripple's relationship with U.S. regulators, particularly the SEC, has been complex, marked by legal challenges concerning 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 was an unregistered security. This ongoing legal battle has been a significant point of contention within the cryptocurrency community.
In conclusion, Garlinghouse's statements reflect a broader sentiment in the crypto industry regarding regulatory challenges and the potential for broader acceptance of cryptocurrency ETFs in the U.S. market. His insights offer a critical perspective on the SEC's current stance and its implications for the future growth and stability of the cryptocurrency market.
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