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Ripple CEO backs XRP ETF, calls for clearer crypto regulation

source-logo  crypto.news 21 February 2024 07:46, UTC

Ripple CEO Brad Garlinghouse, in a Bloomberg interview on Feb. 20, expressed support for the creation of an XRP exchange-traded fund (ETF).

Garlinghouse highlighted the importance of diversification for investors, comparing the current state of the cryptocurrency market to the early days of the stock market. He suggested that, like in the stock market, where investors seek exposure to a range of assets rather than a single stock, the cryptocurrency market will likely see the introduction of more ETFs to distribute risk more broadly.

However, he refrained from providing specifics about potential discussions with issuers regarding an XRP ETF.

The discussion also touched upon the transformative impact of the U.S. Securities & Exchange Commission’s (SEC) approval of 11 Spot Bitcoin ETFs. He interpreted this move as a reluctant yet pivotal shift by the SEC, influenced significantly by industry-led legal challenges, notably Grayscale’s victory. This change, in Garlinghouse’s view, is a step towards a more secure and robust investment framework for cryptocurrencies.

Further discussing the global regulatory landscape, Garlinghouse also pointed out the comparative delay of the U.S. in establishing a comprehensive crypto regulation framework, especially when contrasted with the UK and the European Union. With more than 20% of Americans engaged with cryptocurrencies either directly or indirectly, he underscored the pressing need for the U.S. to address cryptocurrency regulation as a critical issue in the upcoming elections.

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Garlinghouse has been vocal about the necessity for legislation that clearly defines and regulates various crypto assets. He advocated for the passage of laws such as the Securities Clarity Act, the Token Taxonomy Act, and the Digital Commodity Exchange Act. These measures, he argues, would not only foster innovation and growth within the sector but also position the U.S. as a leader in crypto regulation globally.

In this context, Ripple, among others, has contributed approximately $80 million to the Fairshake political action committee (PAC) to influence U.S. policymakers and support crypto-friendly candidates.

Additionally, Garlinghouse shared insights on Ripple’s strategic expansion within the digital asset custody domain following the acquisition of Standard Custody & Trust Company. This move, coupled with the earlier acquisition of Swiss provider Metaco, solidifies Ripple’s ambitions to offer comprehensive services for the tokenization, storage, movement, and exchange of digital assets. Ripple’s pursuit in this area is further evidenced by a job posting for an experienced enablement engineer in New York, indicating the company’s ongoing efforts to enhance its capabilities in digital asset custody.

Read more: Ripple’s Garlinghouse confirms IPO plans are on hold for now