• Ripple CEO predicts more crypto ETFs, including Ripple, Solana, and Cardano.

• Progress on Ethereum ETFs signals potential growth, but Garlinghouse criticizes SEC’s stance.

Brad Garlinghouse, CEO of Ripple, recently projected the introduction of additional crypto exchange-traded funds (ETFs) at the Consensus 2024 Conference.  Following the approval of spot Bitcoin (BTC) ETFs and the progress of Ethereum (ETH) ETFs, Garlinghouse believes that ETFs for Ripple (XRP), Solana (SOL), and Cardano (ADA) are inevitable.

Garlinghouse stated,

“I think it’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana (SOL) ETF, there’s gonna be a Cardano (ADA) ETF, and that’s great.”

Recently, Ethereum ETFs made notable strides with key filings approved by the U.S. Securities and Exchange Commission (SEC). Although final approval is still pending, these advancements are seen as a positive sign for the broader cryptocurrency market.

Cathie Wood, CEO of ARK Invest, remarked that the approval of ether ETFs is indicative of crypto becoming an election issue. Despite these promising developments, Garlinghouse cautioned that there will be a significant regulatory approval process for the new ETFs, though he considers these as “speed bumps” rather than major obstacles.

Ripple CEO Battles SEC’s Ambiguity

Garlinghouse expressed frustration with the perceived lack of regulatory clarity from U.S. authorities, particularly targeting SEC Chair Gary Gensler. He criticized Gensler’s refusal to definitively classify ether as a security despite insisting that existing regulations are clear.

In 2022, Ripple gained access to internal SEC documents, including emails and notes from William Hinman’s 2018 speech, which declared ether not a security. These documents revealed extensive internal debates about ether’s status, contradicting the SEC’s public stance. Garlinghouse argued that relying on outdated regulatory frameworks, such as the Howey Test, is impractical for modern cryptocurrencies.

Garlinghouse argued that the U.S., the world’s largest economy, is lagging in providing clear regulatory guidance for the crypto industry. He remarked, “Somehow, [Gensler] believes that the Orange Grove tests from 70-80 years ago provide clear rules for crypto,” referring to the Howey Test. “It makes no sense and is a travesty because the SEC’s stance has become such a political liability, affecting even the presidential race.”

Ripple Shifts Focus Globally Amid U.S. Regulatory Hurdles

Reflecting on Ripple’s global operations, Garlinghouse noted a significant shift in hiring practices due to regulatory challenges in the U.S. In 2023, approximately 60% of Ripple’s hiring was outside the U.S., with major offices established in London, Geneva, and Singapore.

This trend underscores Ripple’s emphasis on regulatory clarity and strategic customer locations. “Getting the regulatory posture right in the United States is just critical,” Garlinghouse emphasized, highlighting the importance of clear and consistent regulations for the future growth and stability of the crypto industry.

Recent activities in the Ripple market have sparked discussions among investors. In just 24 hours, nearly $40 million worth of Ripple (XRP) was transferred from Binance to an unknown wallet. According to Whale Alert, this included a significant transaction of 50.7 million XRP and another transfer of 26.2 million XRP. Additionally, as of this writing, XRP is currently trading at $0.5279 with a 24-hour rise of 2%.