By Alicia Maher
Once questioned about the possibilities of an XRP Exchange-Traded Fund debuting in the United States by Fox Business’s Charles Gasparino on October 18, Ripple Head Brad Garlinghouse complained that the Securities and Exchange Commission was playing favorites. Why is the SEC choosing victors and losers? He asked.
Garlinghouse further said that Bitcoin consumes a “huge” amount of electrical power. As a result, per the CEO of Ripple, favoring Bitcoin does not align with SEC Head Gary Gensler’s ecological goal. According to him, one Bitcoin transaction burns the equivalent of 75 liters of gasoline. He also stated before that XRP was 100,000 times more efficient than the leading coin. The fact that Gensler has been silent on the statutory position of Ethereum, the second-largest coin, is also a cause of worry for Garlinghouse. Many outstanding Ether ETF submissions in the United States are awaiting approval from the appropriate regulatory authority.
Meanwhile, the ProShares Bitcoin Strategy ETF, the very first authorized Bitcoin futures ETF, is slated to begin moving on the New York Stock Exchange. Despite the SEC’s efforts to increase transparency and clarity, Garlinghouse believes it is “amusing” that the agency does not do the same when it pertains to its activities: “What we desire above all are visibility and assurance.”
Ripple Is Not Ready To Compromise
As per Gasparino, the CEO of Ripple stated that if XRP was declared a security, Ripple just wouldn’t agree and cut their losses. According to the CEO, there must be “total confidence” regarding the cryptocurrency’s legal status in order for it to be settled. He went on to state that there is no circumstance in which they will settle until there is an absolute guarantee as to what constitutes XRP on a going-forward basis.
As previously mentioned, CoinShares, a crypto wealth management company, launched an XRP exchange-traded product (ETP) in April that was listed on the SIX Swiss markets in Zurich. Nevertheless, after the SEC filed a lawsuit against Ripple, saying that the currency is an unlicensed asset, the Swiss crypto wealth manager 21Shares decided to withdraw XRP from its list of exchange-traded products.
Mike Novogratz: Ripple’s SEC Litigation Hasn’t Hurt XRP Value
In a tweet, Galaxy Digital CEO Mike Novogratz noted that the XRP crypto price had tripled since the SEC charged San Francisco-based blockchain business Ripple to court. Ever since the SEC’s moves, $XRP’s price has nearly tripled. It hasn’t fallen. It shows how robust groups can be once built around common interests. — Mike Novogratz 17th of October, 2021. Novogratz, who has previously criticized XRP, says this shows the resilience of cryptocurrency ecosystems. To illustrate his argument, he used GameStop and the meme coin Dogecoin in a subsequent tweet.
After the SEC complaint, XRP fell over 60% due to platforms suspending trading, but it quickly recovered as Ripple welcomed the battle. The XRP ecosystem recently gained a tiny victory when a judge allowed its users to file “amici curiae arguments” (friends of the court). But they will not be able to directly participate as third-party defendants in court.
Despite rebounding from its first loss and rising, XRP is still down more than 67% from its January 7th peak. Price movement is believed to be limited by the SEC. In April, Novogratz remarked that the XRP rise didn’t make any sense after the disputed token’s price quadrupled in one month. The XRP Legion was contrasted with insane conspiracists by Novogratz.