-
Brad
Garlinghouse
predicts
the
inevitable
approval
of
XRP,
Solana
and
Cardano
ETFs,
despite
significant
regulatory
hurdles. -
Garlinghouse
criticized
the
SEC’s
unclear
crypto
regulations,
highlighting
the
need
for
better
regulatory
clarity
in
the
U.S.
AUSTIN,
TEXAS
—
More
crypto
exchange-traded
funds
(ETFs)
are
coming
–
following
approval
of
spot
bitcoin
(BTC)
ETFs
and
progress
on
ones
designed
to
hold
Ethereum’s
ether
(ETH)
–
predicts
the
CEO
of
Ripple.
“I
think
it’s
just
a
matter
of
time,
and
it’s
inevitable
there’s
gonna
be
an
XRP
ETF,
there’s
gonna
be
a
Solana
(SOL)
ETF,
there’s
gonna
be
a
Cardano
(ADA)
ETF,
and
that’s
great,”
he
said.
Ripple
is
closely
linked
to
XRP.
Recently,
ether
ETFs
made
abrupt
and
unexpected
progress,
with
key
filings
being
approved
by
the
U.S.
Securities
and
Exchange
Commission.
Final
approval
is
needed
before
they
can
begin
trading.
Cathie
Wood,
the
CEO
of
ARK
Invest,
also
said
during
Consensus
that
these
ether
ETFs
were
approved
because
crypto
is
now
an
election
issue.
Garlinghouse
said
that
there
will
be
a
significant
regulatory
approval
process
before
these
are
approved,
but
in
the
end
these
will
be
“speed
bumps.”
Garlinghouse
also
railed
against
what
he
perceives
as
a
lack
of
regulatory
clarity
from
Washington.
“[SEC
Chair]
Gary
Gensler
has
been
called
to
Congress,
and
when
asked
if
ether
is
a
security,
he
won’t
answer
the
question.
Yet,
he
insists
that
the
rules
are
very
clear
and
don’t
need
updating,”
he
said.
In
2022,
the
SEC
kept
confidential
emails
and
notes
from
William
Hinman’s
2018
speech,
which
declared
ether
not
a
security.
Ripple,
sued
by
the
SEC,
obtained
access
to
these
redacted
documents,
revealing
extensive
internal
SEC
discussions
about
ether’s
status
as
a
security.
The
U.S.,
the
world’s
largest
economy,
represents,
in
Garlinghouse’s
opinion,
the
“bottom
decile
of
regulatory
clarity.”
“Somehow,
[Gensler]
believes
that
the
Orange
Grove
tests
from
70-80
years
ago
provide
clear
rules
for
crypto,”
he
said,
referring
to
the
Howey
Test’s
Floridian
roots.
“It
makes
no
sense
and
is
a
travesty
because
the
SEC’s
stance
has
become
such
a
political
liability,
affecting
even
the
presidential
race.”
Garlinghouse
also
mentioned
that
last
year
75%
of
Rippple’s
hiring
was
outside
the
U.S.,
and
this
year
it’s
about
60%,
with
major
offices
in
London,
Geneva
and
Singapore.
The
hiring
trends
reflect
Ripple’s
focus
on
regulatory
clarity
and
customer
locations,
he
said.
“Getting
the
regulatory
posture
right
in
the
United
States
is
just
critical,”
he
concluded.