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In a recent interview, Ripple CEO Brad Garlinghouse expresses confidence in the U.S. Securities and Exchange Commission (SEC) approving spot exchange-traded funds (ETFs) based on cryptocurrencies other than bitcoin. Garlinghouse emphasizes the potential for increased market safety and robustness, welcoming the possibility of an XRP ETF.
SEC's Inevitable Approval of Non-Bitcoin Crypto ETFs
Brad Garlinghouse, CEO of Ripple, discusses the likelihood of the SEC approving spot ETFs based on cryptocurrencies beyond bitcoin in a recent interview with Bloomberg. He anticipates the SEC's approval of ETFs for various crypto tokens, emphasizing the importance of diversifying risk similar to traditional stock market practices. Garlinghouse notes the positive impact of court decisions pressuring the SEC to approve spot bitcoin ETFs, stating,
In my opinion, it makes these markets safer, it makes them more robust, and so this is good for the investment community.
When asked about the potential approval of an XRP ETF, Garlinghouse expresses a welcoming stance, stating, "We would certainly welcome it and I think it’s inevitable that there’ll be multiple ETFs around different tokens. I think you’ll even see ETFs potentially around baskets."
SEC's Enforcement Approach and Legislative Outlook
Garlinghouse comments on the SEC's enforcement-centric approach to crypto regulation, noting the SEC's consistent losses in cases like Ripple and Grayscale. He believes the SEC may reconsider its strategy when faced with continuous losses or if Congress intervenes with new legislation. However, he acknowledges the challenges of legislative action in an election year. The interview sheds light on the evolving regulatory landscape for cryptocurrencies, with Garlinghouse optimistic about potential legislative developments around stablecoins. Ripple continues to advocate for the industry in Washington.