In a recent Bloomberg interview on February 20th, Ripple CEO Brad Garlinghouse voiced his backing for the establishment of an XRP exchange-traded fund (ETF), underlining the necessity for diversification in the cryptocurrency market.
Garlinghouse drew parallels between the current crypto landscape and the early stages of the stock market, emphasizing the importance of investors seeking exposure to a variety of assets rather than focusing solely on individual cryptocurrencies. He suggested that the proliferation of ETFs could play a pivotal role in distributing risk more broadly across the crypto market.
Despite his support for an XRP ETF, Garlinghouse refrained from disclosing specific discussions with issuers regarding its potential creation.
The conversation also delved into the transformative impact of the U.S. Securities & Exchange Commission’s recent approval of 11 Spot Bitcoin ETFs. Garlinghouse interpreted this as a significant yet reluctant shift by the SEC, influenced in part by industry-led legal challenges, particularly Grayscale’s successful outcome. He viewed this development as a crucial step towards establishing a more secure and robust investment framework for cryptocurrencies.
Turning to global regulatory dynamics, Garlinghouse highlighted the comparative lag in the U.S. in establishing comprehensive crypto regulation, especially when compared to regions like the UK and the European Union. With over 20% of Americans actively involved in cryptocurrencies, Garlinghouse stressed the urgent need for the U.S. to address crypto regulation as a pivotal issue in upcoming elections.
Garlinghouse has consistently advocated for clear legislation to define and regulate various crypto assets. He endorsed measures such as the Securities Clarity Act, the Token Taxonomy Act, and the Digital Commodity Exchange Act, asserting that these laws would stimulate innovation and position the U.S. as a frontrunner in global crypto regulation.
In line with these efforts, Ripple and others have contributed approximately $80 million to the Fairshake political action committee (PAC) to influence policymakers and support candidates sympathetic to the crypto industry.
Furthermore, Garlinghouse discussed Ripple’s strategic expansion into the digital asset custody sector following the acquisition of Standard Custody & Trust Company. This move, coupled with the earlier acquisition of Swiss provider Metaco, underscores Ripple’s commitment to providing comprehensive services for tokenization, storage, movement, and exchange of digital assets. Ripple’s ongoing recruitment efforts, such as the job posting for an experienced enablement engineer in New York, reflect the company’s dedication to enhancing its digital asset custody capabilities.
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