On Thursday, at the Consensus 2024 conference, which is being held in Austin, Texas, Ripple CEO Brad Garlinghouse shared his thoughts on the future of spot crypto ETFs in the United States.
With the recent approval of spot Bitcoin ETFs and advancements in the U.S. SEC’s approval process for spot Ethereum ETFs, Garlinghouse confidently predicted a surge in spot ETF approvals for various popular altcoins.
He believes that spot ETFs for XRP, Solana (SOL), and Cardano (ADA) are on the horizon, stating, “It’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana ETF, there’s gonna be a Cardano ETF, and that’s great.”
This prediction follows the unexpected progress of spot Ethereum ETFs, which saw 19b-4 filings approved recently by the SEC. Although final approval is still pending, these developments mark a significant milestone in the crypto industry’s journey toward mainstream acceptance. Cathie Wood, CEO of ARK Invest, highlighted during the conference that the expected approval of spot Ethereum ETFs was influenced by crypto’s growing importance as an election issue.
Despite the optimism surrounding these developments, Garlinghouse acknowledged the substantial regulatory hurdles that remain. He characterized these as “speed bumps,” indicating a belief that while challenging, they are not insurmountable.
Garlinghouse also expressed frustration with the current regulatory environment in Washington, criticizing what he sees as a lack of clarity from the SEC. He referenced SEC Chair Gary Gensler’s reluctance to clarify whether Ethereum is considered a security, despite Gensler’s assertions that existing rules are clear and sufficient.
In Garlinghouse’s view, the U.S., despite being the world’s largest economy, ranks poorly in terms of regulatory clarity. He criticized Gensler’s reliance on the decades-old Howey Test, originally designed for traditional securities, to regulate modern cryptocurrencies. Garlinghouse argued that this approach is outdated and politically problematic, even affecting the presidential race.
Reflecting on Ripple’s global strategy, Garlinghouse noted that last year, 75% of Ripple’s hiring occurred outside the U.S., with that figure currently at 60%. Ripple’s major offices in London, Geneva, and Singapore highlight the company’s focus on regions with clearer regulatory frameworks and significant customer bases.
Garlinghouse emphasized the critical importance of achieving regulatory clarity in the United States, indicating that it is essential for the industry’s growth and Ripple’s strategic planning.