By
Steve Muchoki
April 26th, 2024
Although Garlinghouse did not speak specifically on an XRP ETF, he noted that there will likely be other crypto ETFs with time.
In a recent interview with Bloomberg, Ripple Labs Inc chief executive officer (CEO) Brad Garlinghouse spoke on rumors of an XRP exchange-traded fund (ETF). The Ripple Labs exec also discussed the need for lawmakers to prioritize clarity for crypto regulations in the US.
Speaking to Bloomberg TV, Garlinghouse seemed optimistic about the possibility of an XRP ETF without offering a timeline. The CEO pointed to the approval of spot Bitcoin (BTC) ETFs from the United States Securities and Exchange Commission (SEC) as an indicator to the chance that there will eventually be other ETFs in the market in addition to Bitcoin.
Garlinghous Says XRP and Other ETFs Are Likely
Garlinghouse also noted that the approval shows that the courts are ready to tackle the SEC on its reluctance towards crypto ETFs. Last month, the SEC approved several spot Bitcoin ETFs for the first time after over a decade of repeated rejections. The SEC repeatedly disapproved proposals, citing concerns about fraud and market manipulation. Grayscale Investments eventually sued the Commission and won the case after the judge disagreed with the SEC. According to the court, the SEC was applying its rules arbitrarily. Generally, Grayscale’s victory is said to have set the pace for the approval of Bitcoin ETFs.
Speaking on the likelihood of crypto ETFs, Garlinghouse said:
“I think it only makes sense there will be other ETFs too…We would certainly welcome it. And I think it’s inevitable that there’ll be, you know, multiple ETFs around different tokens.”
Interestingly, Garlinghouse did not speak specifically on whether or not Ripple Labs was working on a proposal for XRP ETFs. However, Valkyrie Funds’ Chief Investment Officer Steven McClurg has said he believes XRP ETFs will happen. Citing Ripple’s recent progress in an interview, McClurg said an approval for XRP or Ether (ETH) ETFs wouldn’t be surprising.
Ripple Still in Court with the SEC
Garlinghouse also spoke about Ripple’s legal issues with the SEC. According to the CEO, the SEC has lost repeatedly but is still going after Ripple. Last July, Ripple won a partial victory against the SEC after Judge Analisa Torres stated that XRP is not a security because it does not meet the criteria for the category, according to the Howey Test. The ruling spiked XRP’s price, as the token jumped more than 70% in 24 hours to $0.7938. However, the judge ruled that the institutional sales of XRP tokens did violate federal securities laws.
Garlinghouse believes the SEC might continue its Ripple hunt for a while. He stated:
“They have lost consistently. They lost the Ripple case on everything they cared about…It stops, I think, when the SEC either realizes they’re losing consistently, or you have Congress lean in and write new legislation.”
Generally, Garlinghosue criticized the SEC’s approach to crypto regulations using enforcement action. He also emphasized the need for clarity in the crypto sector, stating that the US is lagging behind many other countries in this regard. Unfortunately, the company might have to grapple with the SEC for some time. According to an X post, an extended deadline for remedies-related discovery expired yesterday. However, there might be no public information on Ripple’s submissions until March. In addition, Judge Torres is not expected to decide until after April. This means that the judge could delay until July or August, or even push the case further until next year.
