Peter Smith
At Consensus 2024, Ripple's CEO Brad Garlinghouse forecasted the inevitable arrival of ETFs for XRP, Solana (SOL), and Cardano (ADA), emphasizing regulatory challenges and the need for clarity.
Ripple's Brad Garlinghouse Foresees XRP ETFs on the Horizon
AUSTIN, TEXAS — During his address at Consensus 2024, Ripple CEO Brad Garlinghouse predicted the imminent approval of exchange-traded funds (ETFs) for XRP, Solana (SOL), and Cardano (ADA). Following the recent progress with Bitcoin (BTC) and Ethereum (ETH) ETFs, Garlinghouse expressed confidence that these assets would soon join the ETF market.
Garlinghouse emphasized the inevitability of ETFs for XRP, Solana, and Cardano. He noted that the process might involve significant regulatory hurdles, but these would ultimately be overcome. "It's just a matter of time," he stated, underscoring the ongoing advancements and growing acceptance of crypto assets in the financial markets.
Regulatory Landscape and XRP's Future
Garlinghouse highlighted the recent unexpected progress of ether ETFs, with key filings being approved by the U.S. Securities and Exchange Commission (SEC). Cathie Wood, CEO of ARK Invest, also noted at Consensus that the approval of ether ETFs was influenced by the growing political significance of cryptocurrency.
Addressing regulatory challenges, Garlinghouse criticized the lack of clear guidelines from the SEC. He cited the example of SEC Chair Gary Gensler, who has been ambiguous about whether ether is a security. This ambiguity, according to Garlinghouse, has been a significant obstacle for the crypto industry.
Ripple's Battle with the SEC
Garlinghouse recalled Ripple's legal battle with the SEC, which included obtaining confidential emails and notes from William Hinman's 2018 speech. These documents revealed extensive internal discussions within the SEC regarding ether's status as a security. Despite this, Garlinghouse argued that the U.S. remains at the "bottom decile of regulatory clarity" among major economies.
Reflecting on Ripple's strategic moves, Garlinghouse noted that 75% of Ripple's hiring in the previous year occurred outside the U.S., with this year's figure around 60%. Ripple has established major offices in London, Geneva, and Singapore, focusing on regions with cleaner regulatory environments.
In conclusion, garlinghouse concluded by emphasizing the critical need for the U.S. to establish a coherent regulatory framework for cryptocurrency. He argued that the current lack of clarity not only hampers industry growth but also poses political liabilities, as evidenced by the SEC's stance affecting presidential race dynamics.
Peter Smith
