David Edwards
In a series of recent comments, Ripple’s CEO, Brad Garlinghouse, expressed strong disapproval of the U.S. regulatory framework for cryptocurrencies, particularly criticizing SEC Chair Gary Gensler. This tension could spell trouble for investors in Ripple’s cryptocurrency, XRP. Let’s delve into Garlinghouse’s remarks and explore the latest forecasts for XRP’s value.
Brad Garlinghouse was forthright in his critique of the U.S. Securities and Exchange Commission (SEC) and its leader, Gary Gensler. Speaking at DC Fintech Week, he accused the SEC and Gensler of misdirecting their efforts by pursuing legal action against Ripple and engaging with figures like Sam Bankman-Fried. Garlinghouse suggested that this focus might have contributed to overlooking fraud within the broader cryptocurrency market.
He also targeted the SEC over speculation that they were in talks with Grayscale about the possibility of converting the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF). Garlinghouse contrasted the U.S. regulatory approach with that of other countries that are more actively engaging with the crypto industry, implying that the SEC’s current strategy under Gensler’s leadership is politically detrimental.
In another interview, Garlinghouse expressed frustration with the U.S. government’s unclear position on cryptocurrencies. Although Ripple has recently achieved a partial legal victory over the SEC, Garlinghouse emphasized that American banks are still reluctant to incorporate XRP, owing to the persistent regulatory uncertainties.
He noted that despite the court win, the U.S. government’s stance towards cryptocurrencies remains unwelcoming. Garlinghouse specifically mentioned the Office of the Comptroller of the Currency (OCC) as being opposed to cryptocurrencies, suggesting that significant involvement from U.S. banks is unlikely until there’s a shift in this attitude.
Despite these criticisms and the unclear regulatory landscape, Ripple has seen some positive developments. The company has received constructive feedback from the SEC and payment processing companies. They’ve also proposed a plan to Judge Torres, seeking a 90-day period to arrange for a scheduling entry.
