In a recent Bloomberg TV interview, Ripple CEO Brad Garlinghouse provided insights into the ongoing legal battle with the U.S. Securities and Exchange Commission. He expressed Ripple’s welcoming approach toward the potential launch of XRP exchange-traded funds (ETFs). Let us quickly go through the key highlights from the interview.
Navigating the SEC Dispute: “We Won Against the SEC”
Addressing Ripple’s legal dispute with the US Securities and Exchange Commission, Garlinghouse highlighted the SEC’s shift towards “regulation through enforcement.” He emphasized that Ripple had consistently advocated for clearer rules and regulations in the crypto space.
He expressed satisfaction with the court’s decision in the Ripple case, asserting, “The court determined that XRP is not in and of itself a security.”
Garlinghouse affirms, “The SEC has lost consistently. They lost the Ripple case on everything they cared about.” Despite the victory, the SEC may appeal. Garlinghouse acknowledged the uncertainty surrounding the resolution’s timeline, stating, “It stops when the SEC either realizes they’re losing consistently, or you have Congress lean in and write new legislation.”
Conformity of XRP ETFs
As we all know, ever since Bitcoin ETFs were not even approved, Ripple’s XRP community has eagerly anticipated the potential launch of XRP exchange-traded funds. In a previous interview, Garinghouse refused to comment on their launch citing that XRP ETFs were not the company’s primary concern at that moment.
However, the view seems to have changed. Addressing the speculation surrounding XRP ETFs, Garlinghouse welcomed the possibility, drawing parallels to the evolving stock market in its early days.
The Ripple CEO says, “We would certainly welcome it. It only makes sense there will be other ETFs too… the earliest days of the stock market. You want to typically think about diversifying risk.”
He expressed Ripple’s openness to multiple ETFs around different tokens, foreseeing a diverse range of ETFs and even baskets to mitigate risk.
Ripple’s Regulatory Compliance
The discussion further dived into Ripple’s broader role in the crypto space, emphasizing the company’s commitment to compliance and regulatory engagement.
Garlinghouse shared insights into Ripple’s acquisitions, particularly Standard Custody, emphasizing the importance of custody solutions for institutional success in the crypto sphere. “Everything we have done at Ripple has compliant first… this year, I think has to be a compliance-first mindset for all of the crypto industry,” says the CEO.
Ripple’s Advocacy in Political and Regulatory Leadership
Discussing the broader regulatory landscape, Garlinghouse states, “I think it’s incredibly important that the US regain a leadership position around crypto regulation.”
He acknowledged Ripple’s participation in a super PAC, alongside Andreessen Horowitz and Coinbase, to support pro-crypto candidates advocating for constructive regulation and innovation.
Garlinghouse also addressed the regulatory challenges faced by the crypto industry, particularly Senator Elizabeth Warren’s stance on AML and KYC laws.
He states, “I would actually argue that Elizabeth Warren has it wrong.” … KYC and AML are not confusing rules,” and that the industry’s commitment to compliance and debunked the notion that crypto circumvents these regulations.
