Ripple Labs CEO Brad Garlinghouse recently shared insights during a FOX Business interview about the impact of the so-called 'Trump trade' on cryptocurrency prices, evidenced by Bitcoin reaching an all-time high in the past 48 hours.
Garlinghouse also discussed how Ripple and the broader digital asset industry might adapt to the upcoming regulatory environment expected after Donald Trump's inauguration as president next year.
The Ripple CEO holds an optimistic view on Trump's stance in support of cryptocurrencies.
Garlinghouse emphasized that Ripple has been focused on addressing the inefficiencies of traditional cross-border payments since its inception, describing them as 'slow and expensive.' By utilizing XRP, the company aims to streamline these transactions, making them faster and more cost-effective.
However, the CEO criticized the Biden administration's stance on digital assets, calling it an 'illegal war' on the industry. He expressed optimism that the situation could change with Trump's support for cryptocurrencies.
When asked about the potential for increased income opportunities in the U.S. under impending regulatory changes, Garlinghouse explained that the SEC's lawsuit against XRP has effectively 'frozen' Ripple's market potential in the country.
Currently, 95% of Ripple's customer base is located outside the United States, Garlinghouse noted, emphasizing that the company cannot fully realize growth in a market lacking regulatory transparency.
Garlinghouse noted that while the cryptocurrency industry is thriving in countries like China, Japan, the UK, and Switzerland, the U.S. is lagging in embracing digital assets.
The CEO of Ripple expressed hope that the anticipated deregulation under Trump would bring clearer guidelines, allowing agencies like the SEC and CFTC to play a constructive role in shaping the industry.
Garlinghouse criticized the existing regulatory framework, particularly the application of the Howey test, arguing that it fails to adequately address the unique characteristics of the cryptocurrency industry. He also emphasized the need to update regulations to reflect the rapidly evolving industry realities of the past decade.
The United States will become a center for digital assets in the coming years.
In an interview, FOX Business highlighted comments from Coinbase Chief Policy Officer Faryar Shirzad regarding the private meeting between Trump and Coinbase CEO Brian Armstrong.
Shirzad pointed out that Trump has expressed a willingness to engage with the crypto industry and has articulated a vision for making the U.S. a global leader in digital assets. Garlinghouse echoed this sentiment, acknowledging Coinbase's significant role in advocating for a cryptocurrency agenda during the campaign.
As speculation grows about candidates for the next SEC chair under the Trump administration—names like Dan Gallagher, Teresa Goody, and Commissioner Mark Uyeda are surfacing—Garlinghouse stressed the importance of the new chair collaborating with Congress to address regulatory gaps that cause market confusion.
Garlinghouse ultimately holds an optimistic outlook for the future, stating that he believes a new era for cryptocurrencies is about to arrive in the U.S. He anticipates that the country will become a central hub for digital assets and blockchain technology within the next five to ten years.
As of the time of writing, XRP is trading at $1.10, having surged 104% in just two weeks since Trump's election victory. However, the token's trading price is still 67% lower than its all-time high of $3,040 set nearly seven years ago.
