Thomas Daniels
In a Bloomberg interview on February 20th, Ripple’s Chief Executive Officer Brad Garlinghouse voiced his support for the establishment of a fund based on XRP that is traded on exchanges (ETF).
Garlinghouse underscored the significance of investment diversification, drawing parallels between the nascent cryptocurrency sector and the stock market’s early days. He proposed that, akin to the stock market where investors diversify their portfolios across various assets rather than concentrating on a single stock, the crypto market is poised for the introduction of more ETFs. This development would enable a wider spread of risk.
He did not delve into details about any ongoing negotiations with issuers concerning an XRP ETF.
The conversation also covered the significant impact of the U.S. Securities & Exchange Commission’s (SEC) green light for 11 Spot Bitcoin ETFs. Garlinghouse interpreted this as a cautious yet critical pivot by the SEC, significantly influenced by legal challenges led by the industry, with Grayscale’s triumph being notable. He views this as a move towards enhancing the investment framework for cryptocurrencies, making it more secure and robust.
Garlinghouse also shed light on the global regulatory environment, noting the U.S.’s slower pace in crafting a comprehensive framework for cryptocurrency regulation compared to the UK and the European Union. He emphasized the urgent need for the U.S. to tackle cryptocurrency regulation, given that over 20% of Americans are engaged with cryptocurrencies in some form. He highlighted this as a key issue for the upcoming elections.
He has been outspoken about the need for legislation that clearly delineates and regulates different cryptocurrency assets. He has advocated for the enactment of specific laws, including the Securities Clarity Act, the Token Taxonomy Act, and the Digital Commodity Exchange Act. According to him, these legislative measures would not only drive innovation and growth in the sector but also position the U.S. as a global leader in cryptocurrency regulation.
In this vein, Ripple has contributed about $80 million to the Fairshake political action committee (PAC) to sway U.S. policy makers and back candidates who are favorable towards cryptocurrency.
Moreover, Garlinghouse shared insights into Ripple’s strategic initiatives in the realm of digital asset custody, following its acquisition of Standard Custody & Trust Company. This acquisition, along with the earlier purchase of Swiss firm Metaco, demonstrates Ripple’s commitment to offering a full suite of services for the tokenization, secure storage, transfer, and trading of digital assets. Ripple’s ambition in this area is further underscored by its recruitment drive for an experienced enablement engineer in New York, signifying the company’s continued efforts to bolster its digital asset custody capabilities.
