Brad Garlinghouse, the CEO of Ripple, thinks that spot exchange-traded funds (ETFs) based on cryptocurrency tokens other than bitcoin will be approved by the Securities and Exchange Commission (SEC) in the United States. He emphasized, “I think it’s inevitable that there’ll be multiple ETFs around different tokens,” adding that an XRP ETF would be welcomed by Ripple. “This is good for the investment community, in my opinion, because it makes these markets safer and more robust,” stressed the CEO.
Brad Garlinghouse on the Possible Approval of the XRP ETF
In an interview with Bloomberg on Tuesday, Ripple CEO Brad Garlinghouse talked about the possibility that the Securities and Exchange Commission (SEC) of the United States will permit spot exchange-traded funds (ETFs) based on XRP and other cryptocurrency currencies in addition to bitcoin.
Regarding the possibility that the securities regulator will accept cryptocurrency ETFs that aren’t bitcoin-based, Garlinghouse stated:
It only seems sense to me that there will be further ETFs.
The Ripple CEO clarified by drawing comparisons to the stock market, saying, “You don’t really want exposure to one stock or one company.” Generally speaking, you should consider diversifying your risk.
“So I think we will see other [crypto] ETFs,” he said. It’s difficult to say when we will see them.” “The sad reality of what we saw with the bitcoin ETF is that the SEC finally approved spot bitcoin ETFs because the courts forced the SEC’s hand, and really Chair Gensler’s hand,” he continued. “In my opinion, it makes these markets safer and more robust, and so this is good for the investment community,” the executive added.
To the question of whether he would support an XRP ETF, Garlinghouse answered:
We would definitely be in favor of it, and I believe that several ETFs centered around various tokens would inevitably arise. I even predict that ETFs will be present near baskets.
A number of businesses have already submitted SEC filings to introduce spot Ethereum ETFs. According to Standard Chartered’s statement from last month, the securities authority is expected to approve a spot Ethereum ETF in May. Some are dubious, though, as SEC Chair Gary Gensler has not made it clear what he believes about the status of ether (ETH) as a security. The head of the SEC has stated repeatedly that the majority of cryptocurrency tokens, excluding bitcoin, are securities.
In reference to the SEC’s enforcement-focused strategy for overseeing the cryptocurrency sector, Garlinghouse declared, “My opinion is the SEC has lost consistently.” The chief of Ripple pointed out that the presiding judge in the Coinbase case appears to be “pretty skeptical about some of the SEC’s arguments,” highlighting the SEC’s defeats in the Ripple and Grayscale cases.
When the SEC “either realizes they’re losing consistently or you have Congress lean in and write new legislation,” according to Garlinghouse, the agency will cease enforcing its regulations. The CEO of Ripple pointed out that it would likely be difficult during election year. We’ll keep pushing for legislation pertaining to stablecoins in Washington, and maybe this year.
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