How Ripple’s Battle with SEC Could Pave the Way for an XRP ETF

In a speech at Paris Blockchain Week, Brad Garlinghouse, CEO of Ripple, discussed the potential approval of an XRP ETF.

Brad Garlinghouse thinking about XRP ETF.
Created by Kornelija Poderskytė from DailyCoin
  • Brad Garlinghouse has recently discussed topics impacting Ripple and XRP at Paris Blockchain Week.
  • Garlinghouse has highlighted a potential major future development for XRP in the US market.
  • Garlinghouse believes an XRP ETF will benefit market stability and investors as a whole.

Brad Garlinghouse, CEO of Ripple, addressed a range of topics impacting the cryptocurrency company and its XRP token during his speech at Paris Blockchain Week. His address focused on three key areas: the potential approval of a spot-traded XRP Exchange Traded Fund (ETF), the upcoming launch of a stablecoin by Ripple, and cryptocurrency regulations.

Garlinghouse emphasized the importance of diversification within the cryptocurrency market. He pointed to XRP’s unique position in the US regulatory landscape, shaped by Ripple’s ongoing legal battle with the Securities and Exchange Commission (SEC). This legal clarity, according to Garlinghouse, positions XRP favorably for future financial products like ETFs.

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While expressing optimism about the eventual green light for altcoin ETFs in the US, Garlinghouse acknowledged potential delays due to the SEC’s continued scrutiny. However, he stressed that the “regulatory clarity” gained through the SEC lawsuit sets XRP apart. 

This aligns with his previously stated support for an XRP ETF, as evidenced by a February interview with Bloomberg. However, the situation with Ethereum, the second-largest cryptocurrency, presents a contrasting example. While ETF applications have been filed on Ethereum’s behalf, there has been little public comment from the SEC. 

This lack of clarity suggests a potentially more uncertain path for XRP ETFs as Ethereum’s status is further complicated by the Commodity Futures Trading Commission (CFTC) suggesting it could be a commodity. This lack of a unified stance adds another complexity to Ethereum’s ETF approval process.

Ripple Pushes for XRP ETF and Stablecoin Launch

Despite this uncertainty, Garlinghouse drew a parallel to the early days of the stock market, where diversification was crucial for managing investment risk. He believes cryptocurrency ETFs would enhance market stability and benefit investors.

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While Garlinghouse remained tight-lipped on specific discussions with major issuers like BlackRock, he acknowledged the potential value an XRP ETF could bring to the XRP community and Ripple’s role within the ecosystem. He reiterated his support for the concept, stating his belief that “multiple ETFs around different tokens” will likely emerge.

Garlinghouse’s speech highlights Ripple’s focus on navigating the evolving regulatory landscape and exploring new avenues for XRP adoption. The potential launch of a USD stablecoin and the push for an XRP ETF signal Ripple’s continued commitment to expanding the XRP ecosystem and its role within the broader cryptocurrency market.

On the Flipside

  • The ongoing SEC lawsuit against Ripple could still negatively impact XRP’s ETF approval, despite Garlinghouse’s perspective on “regulatory clarity.”
  • The success of Ripple’s stablecoin remains to be seen, especially considering competition from established players in the market.

Why This Matters

Brad Garlinghouse’s speech sheds light on a potential turning point for XRP ETFs in the US. The ongoing SEC lawsuit, while posing a hurdle, might have unexpectedly granted XRP a head start due to the resulting “regulatory clarity.” This could position XRP favorably compared to other major players like Ethereum, whose lack of clear classification might delay their ETF approval process.

Can Ripple compete with established stablecoins like Tether and USDC? Read here to find out:
Ripple Wants to Go Head-to-Head with Tether and USDC: Can It?

Will the crypto market reach a total cap of $5 trillion by the end of 2024? Read the Ripple CEO’s forecast here:
Ripple CEO’s Audacious $5T Forecast: Peril or Prophecy?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.