Ripple CEO Garlinghouse Predicts Ether ETF Approval and Criticizes SEC’s Approach

Brad GarlinghouseRipple’s CEO recently expressed his excitement for the future of cryptocurrency exchange-traded funds (ETFs), with a particular focus on Ether (ETH) and the regulatory approach of the U.S. Securities and Exchange Commission (SEC). speech at world economic forum In Davos, Garlinghouse emphasized the inevitability of other cryptocurrencies like Ether following Bitcoin’s path to ETF approval in the U.S., despite not explicitly predicting a similar path for Ripple’s XRP.

Garlinghouse’s comments come after the SEC approved several Bitcoin ETFs, which he believes sets a precedent for similar cryptocurrency investment products. But he expressed concern about the SEC’s current regulatory strategy under Chairman Gary Gensler, describing it as a “political liability” and not in the best interest of the long-term growth of the U.S. economy. He criticized Gensler’s repetitive actions and varying expectations of results, predicting that a change in SEC leadership would be beneficial to the American people.

The Ripple CEO highlighted the US judicial system’s pressure on the SEC, noting that the Bitcoin ETF approval came only after US courts condemned the SEC’s approach as arbitrary and capricious. This legal battle sets a worrying precedent for future ETF approvals, which may require similar judicial intervention.

Garlinghouse also discussed the important role of stablecoins such as USDT and USDC, advocating for regulatory clarity around them. He looks forward to other players in the stablecoin market, emphasizing their importance in solving real-world needs.

Ripple’s relationship with U.S. regulators, particularly the SEC, has been complicated by legal issues related to classifying XRP as a security or currency. The SEC filed a lawsuit against CEO and co-founder Ripple Labs Inc. in December 2020, alleging that XRP was an unregistered security. This ongoing legal battle has become a major point of contention within the cryptocurrency community.

In conclusion, Garlinghouse’s comments reflect broader sentiment in the cryptocurrency industry regarding regulatory issues and the potential for widespread acceptance of cryptocurrency ETFs in the U.S. market. His insights provide a critical perspective on the SEC’s current position and its impact on the future growth and stability of the cryptocurrency market.

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