Ripple Labs CEO Brad Garlinghouse is facing criticism after a rumored meeting with President-elect Donald Trump. The alleged conversation surrounding XRP and Ripple’s CBDC has drawn negative reactions from the community and comes at a time when XRP’s price has skyrocketed.
Other executives in the crypto industry have also commented on Ripple’s potential influence on U.S. crypto regulations. Thus, former Messari CEO Ryan Selkis accused Garlinghouse on Twitter of promoting XRP and CBDC projects, a claim that was supported by Riot Platforms VP of research Pierre Rochard. Rochard criticized Ripple for what he described as an “anti-Bitcoin agenda,” warning of the company’s influence in shaping U.S. crypto regulations.
Rochard also encouraged the incoming Trump administration to prioritize appointing Bitcoin advocates to key policymaking roles. The calls to action highlight the growing tension between Bitcoin advocates and companies like Ripple that advocate blockchain solutions beyond Bitcoin.
XRP Price Rise Fuels Speculation
XRP’s value has recently spiked into the double digits, further fueling speculation about a rumored meeting between Garlinghouse and Trump. In an interview with Fox Business, Garlinghouse neither confirmed nor denied the meeting but spoke positively about Trump’s alleged ties to the cryptocurrency industry.
“The crypto industry has embraced Trump, and Trump has embraced the crypto industry,” Garlinghouse said. He hopes for more innovation and entrepreneurship under the new administration, citing Trump’s intention to fire SEC Chairman Gary Gensler.
Gensler’s SEC has been accused of being a “regulation by enforcement” agency that has cut off the wings of several US-based cryptocurrency projects. Expectations of loosening regulation under Trump have drawn the ire of many in the industry.
States sue SEC amid policy dispute
Additionally, 18 states, including Texas, Wyoming, and Ohio, have sued the SEC, alleging Gensler has exceeded its authority in enforcing cryptocurrency regulations. The lawsuits claim that the SEC is overstepping its authority and needs more clarity, thereby slowing the growth of the industry.
Lawmakers and industry insiders have criticized the U.S. SEC for failing to provide a legal structure for cryptocurrencies and preferring to enforce against key players. Ripple has been targeted by regulators primarily after the SEC filed a lawsuit in 2020 to review allegations that XRP is an unregistered security.
In a positive development for Ripple, Robinhood Crypto recently restored XRP to its platform. The relisting marks renewed confidence in XRP as regulatory transparency improves. The token was previously delisted following the SEC’s lawsuit against Ripple.
