Home Crypto Market Movers Cryptocurrency ETFs Set to Soar as Ripple CEO Foresees Regulatory Changes

Cryptocurrency ETFs Set to Soar as Ripple CEO Foresees Regulatory Changes

In a groundbreaking address at the World Economic Forum in Davos, Ripple CEO Brad Garlinghouse shared his visionary perspective on the future of cryptocurrency exchange-traded funds (ETFs), shedding light on the imminent approval of Ether (ETH) ETFs and expressing concerns about the current regulatory strategy of the U.S. Securities and Exchange Commission (SEC).

Garlinghouse, a prominent figure in the cryptocurrency space, acknowledged the trailblazing approval of several Bitcoin ETFs by the SEC, considering it a precedent that paves the way for other cryptocurrencies. While he did not explicitly predict a similar path for Ripple’s XRP, he underlined the inevitability of Ether following in Bitcoin’s footsteps.

The Ripple CEO raised eyebrows over his critique of the SEC’s regulatory approach under the leadership of Chair Gary Gensler. Garlinghouse labeled it a “political liability,” asserting that it may not align with the best interests of long-term economic growth in the United States. He pointed to Gensler’s repeated actions and expectations for different outcomes as a cause for concern, foreseeing a potential change in SEC leadership as a positive development for the American people.

The approval of Bitcoin ETFs by the SEC, according to Garlinghouse, was only achieved after facing pressure from the U.S. justice system. A U.S. court criticized the SEC’s approach as arbitrary and capricious, prompting a shift in their stance. This legal battle, as highlighted by Garlinghouse, sets a worrisome precedent for future ETF approvals, suggesting that judicial interventions might become a norm in the regulatory process.

In addition to his insights on ETFs, Garlinghouse emphasized the crucial role of stablecoins such as USDT and USDC in the cryptocurrency market. He advocated for regulatory clarity surrounding these stablecoins, anticipating the entry of new players into the market. According to Garlinghouse, stablecoins play a vital role in addressing real-world needs and should be subject to clear and fair regulations.

According to Garlinghouse, Gensler’s regulatory strategy is a “political liability” and may not align with the long-term growth interests of the U.S. economy. He criticized the SEC chair’s inconsistent actions and expectations, foreseeing a potential shift in leadership that could be advantageous for the American people.

The Ripple CEO drew attention to the U.S. justice system’s role in influencing the SEC’s decisions. He pointed out that the approval of Bitcoin ETFs only materialized after a U.S. court criticized the SEC’s approach as “arbitrary and capricious.” Garlinghouse expressed concern that future ETF approvals might necessitate similar judicial interventions, raising questions about the regulatory predictability for emerging cryptocurrencies.

In addition to discussing ETFs, Garlinghouse addressed the crucial role of stablecoins, such as USDT and USDC, in the cryptocurrency market. He emphasized the need for regulatory clarity surrounding stablecoins and predicted the entry of new players into the stablecoin market, underscoring their significance in addressing real-world needs.

The Ripple CEO’s remarks underscore the complexity of Ripple’s relationship with U.S. regulators, particularly the SEC. The ongoing legal battle between Ripple Labs Inc. and the SEC, which began in December 2020, revolves around the classification of XRP as either a security or a currency. This legal dispute has been a contentious issue within the broader cryptocurrency community.

In summary, Garlinghouse’s statements reflect a prevailing sentiment within the cryptocurrency industry regarding regulatory challenges and the potential expansion of cryptocurrency ETFs in the U.S. market. His insights offer a critical perspective on the SEC’s current regulatory stance and its implications for the future growth and stability of the cryptocurrency market.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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