In a recent interview with Bloomberg TV, Ripple CEO Brad Garlinghouse emphasized the urgent need for clearer regulatory rules in the cryptocurrency space.
Amid the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), Garlinghouse stated that regulatory clarity is important and expressed concerns about the SEC's approach to enforcement.
While discussing the course of Ripple's dispute with the SEC in the interview, Garlinghouse noted that the SEC has largely focused on litigation rather than providing comprehensive regulatory frameworks. Despite the legal hurdles, Ripple prevailed in its lawsuit against the SEC, and the court ruled that XRP, the digital asset at the center of the dispute, was not a security.
Addressing the uncertainty surrounding Ripple and other crypto companies engaged in legal battles with the SEC, Garlinghouse expressed hope for a resolution but acknowledged the possibility of further legal action. He emphasized the importance of clarity from regulators to ensure a conducive environment for innovation and investment in the crypto industry.
Garlinghouse also touched on the possibility of cryptocurrency ETFs, including the potential for an XRP ETF in the future. While Garlinghouse welcomed the idea of diversifying investment options in the crypto market, he said regulatory clarity was needed to facilitate the development of such financial products:
“We would certainly welcome that. And I think it's inevitable that there will be multiple ETFs for different tokens. I think you could even potentially see ETFs within baskets; “I think it further diversifies that risk because there's a lot of excitement around the ETF dynamic here.”
Garlinghouse also discussed Ripple's recent acquisition of Standard Custody, expressing the company's commitment to providing compatible custody solutions for digital assets. He emphasized the importance of regulatory compliance in driving the adoption of cryptocurrencies among institutional investors and financial institutions.
Regarding recent proposals from politicians like Elizabeth Warren to impose tighter regulations on crypto, Garlinghouse pushed back against the notion that the industry lacks compliance measures. He said there are misunderstandings about crypto's regulatory environment, emphasizing that most crypto industry participants comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
*This is not investment advice.
