Ripple’s CEO, Brad Garlinghouse, expressed his belief that the launch of exchange-traded funds (ETFs) for XRP, Cardano, and Solana is inevitable. He shared this sentiment while speaking at the Consensus 2024 event in Austin, Texas. Garlinghouse’s comments come at a critical time as Ripple’s legal battle with the Securities and Exchange Commission (SEC) nears its conclusion, moving into the remedies phase.
Although XRP has been legally declared a non-security in the case, it remains entangled in the ongoing lawsuit, with recent arguments suggesting price manipulation by Ripple. Furthermore, the SEC has contended that assets like Solana and Cardano are unregistered securities in its cases against Coinbase and Binance.
Despite the regulatory uncertainty surrounding the crypto industry, Garlinghouse remains confident that the SEC will approve spot ETFs for Cardano, Solana, and XRP. He believes that once spot Ethereum ETFs are approved and Bitcoin ETFs are launched in January, more crypto ETFs will follow. However, he acknowledges that these products may face regulatory obstacles before obtaining approval, with the process likely to be lengthy, as seen with the SEC’s rejection of spot Bitcoin ETFs and the delay of spot Ethereum ETFs.
Following the approval of 19b-4 filings for spot Ethereum ETFs, discussions have turned to the next product likely to receive approval. Solana has been a central focus of these discussions, with some pointing to XRP as another potential candidate. Supporters of XRP in the community see no reason why a spot XRP ETF should not be approved.
In addition to discussing the potential ETF approvals, Garlinghouse criticized the regulatory environment for cryptocurrencies in the United States. He expressed dissatisfaction with SEC Chair Gary Gensler’s inability to provide a clear label for Ethereum despite inquiries from Congress. Garlinghouse believes that the existing laws are sufficient and do not require updates to accommodate the crypto market. He also revealed that most of Ripple’s new hires are now from outside the United States due to regulatory concerns, highlighting the need for change.
The approval of Ethereum ETF filings by the SEC has been seen as a political move by some industry participants. The broader cryptocurrency industry has perceived the Biden administration as adversarial due to its policies and the SEC’s regulatory approach. However, as the presidential election approaches, the administration appears to be making efforts to engage with the crypto community, particularly as GOP candidate Donald Trump gains support from its members.
This shift in regulatory stance is evident in the House of Representatives passing the FIT21 bill to provide clarity in the industry and the repeal of SAB121, the SEC’s guidance on crypto custody, which has been criticized by the crypto industry.
Cathie Wood, CEO of Ark Invest, believes that these actions are attempts to gain favor with the crypto community and could potentially lead to the SEC granting approval for spot ETFs on other cryptocurrencies, a decision that may not have been made otherwise.
It is important to note that this content is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.