Solana
Ripple CEO Says XRP ETF Is Inevitable With Cardano and Solana
Ripple CEO Brad Garlinghouse believes it is only a matter of time before an XRP ETF launches, alongside ETFs following Cardano and Solana.
Garlinghouse made these remarks while speaking at the ongoing Consensus 2024 held in Austin, Texas. These comments come at a time when Ripple’s long legal battle with the SEC is coming to an end, having recently slipped into the remedy phase.
Although XRP was legally declared not to be a security in the case, it remains entangled in the ongoing lawsuit, with recent arguments pointing to a case of price manipulation by Ripple. Additionally, the SEC also disputed that assets like Solana and Cardano are unregistered securities in its lawsuits against exchanges Coinbase and Binance.
Ripple CEO expects XRP ETF approval
Despite this regulatory uncertainty surrounding the crypto industry, Garlinghouse is confident that the SEC will approve spot ETFs on Cardano, Solana, and XRP. In a broad context, the CEO of Ripple suggested that he expects more crypto ETFs to launch after the approval of Ethereum spot ETFs and the launch of Bitcoin ETFs in January.
However, he acknowledged the regulatory issues these products could face before ultimately being approved, predicting that the approval process would be particularly lengthy. This was seen with Bitcoin spot ETFs, which the SEC rejected for months, and Ethereum spot ETFs, which were delayed for an extended period.
Following the approval of 19b-4 filings on Ethereum Spot ETFs, discussions have moved to the next product awaiting approval. These discussions have particularly centered on Solanawith a certain pointing to XRP. Members of the XRP community see no reason why a spot XRP ETF should not be approved.
Garlinghouse criticizes US regulatory stance on crypto
Additionally, Garlinghouse criticized the regulatory environment for crypto in the United States. He pointed out that while SEC Chairman Gary Gensler has not been able to put a label on Ethereum despite requests from Congress, he says the laws are clear and do not require any updates to adapt to the crypto market.
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According to the CEO of Ripple, the Howey test, developed in the 1946 Supreme Court case, was the litmus test for the SEC, a decision it considered inappropriate. He revealed that most of their new recruits now come from outside the United States due to regulatory issues. However, it appears that the regulatory position is gradually changing.
Crypto becomes political
Remember that the American SEC obtained approval to ETF 19b-4 filings from eight issuers for their Ethereum ETFs on May 23. This approval was rather quick and unexpected, given how long the agency had delayed a decision on the products. Cathie Wood, CEO of Ark Invest, argued that the rapid approval was political.
The broader cryptocurrency industry has perceived the Biden administration as antagonistic, largely due to its policies and the SEC’s regulatory approach. However, as the presidential election approaches, the administration appears to be making efforts to engage the crypto community, especially as Republican nominee Donald Trump. earnings traction among its members.
This shift in regulatory stance in the United States is evident in the House of Representatives’ passage of the FIT21 bill aimed at bringing clarity to the industry and sector. repeal of SAB121, the SEC’s cryptocurrency custody guidelines, which the crypto industry has condemned.
Cathie Wood believes these moves are efforts to curry favor with the crypto community. Notably, these efforts could ultimately lead the SEC to grant approval to spot ETFs on other cryptocurrencies, a decision it normally would not have made.
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