Ripple Labs chief executive Brad Garlinghouse expressed optimism that the US Securities and Exchange Commission will approve additional crypto exchange-traded funds (ETFs). Ripple’s chief expects the approval of the crypto ETFs to build upon the 11 spot Bitcoin ETFs that are now a reality after a decade of rejections.
Garlinghouse believes that approving 11 Bitcoin ETFs by the Gary Gensler-led SEC will pave the path for approval for similar crypto investment products in 2024.
Ripple Labs Executive Optimistic of Additional Crypto ETFs
The Ripple Labs head made the optimistic prediction when interviewing the CNBC correspondent Arjun Kharpal during the ongoing World Economic Forum (WEF) held in Davos, Switzerland.
Garlinghouse revealed in the Tuesday, January 16 interview that the US SEC will likely grant the green light to the Ethereum ETF later this year. The Ripple Labs head was noncommittal on the horizon for the approval, though it admitted that other ETFs are a certainty addition in the future.
Garlinghouse informed the CNBC respondent during the interview held at the Filecoin Sanctuary bordering the WEF venue that the move by SEC is an outright endorsement of crypto integration with the traditional finance ecosystem.
The Ripple chief executive responded to diverse issues that focused on the recent approval of Bitcoin ETFs by the US Securities regulator. He questioned the declaration by the agency chair, Gary Gensler, that such does not signal outright endorsement of Bitcoin.
US investment bank TD Cowen downplayed the possibility of SEC granting spot Ethereum ETF. The New York-based bank indicated that the May deadline will pass till reclassification of Ethereum to a commodity.
JPMorgan analyst dismissed the likelihood of spot Ethereum ETFs till the token realizes commodity classification. The bank’s lead analysts placed a 50% bet that SEC would consider Ethereum as commodity prior to the May deadline lapse.
Ripple Chief Labels Gensler Stance Inconsistent
Garlinghouse decries the regulatory approach that Gensler deployed often to dismiss and attack the digital assets ecosystem. The Ripple chief cited Gensler, who defined insanity as repeated action while expecting to realize a different outcome.
Garlinghouse declared the reigning SEC’s chair a political liability within the country. He considers Gensler’s actions to contradict the pursuit of the citizenry’s best interests.
The Ripple boss regretted that Gensler’s actions did not serve the best interest of guaranteeing the long-term growth of the US economy. The executive added that the SEC’s recent actions were in response to the mounting pressure the regulator faced from the justice system.
Garlinghouse illustrated that the SEC’s regulatory approach prioritizes counterproductive enforcement actions to the crypto sector. The Ripple’s head observed that the US has the Bitcoin ETF owing to the court ruling labeling the SEC as capricious in how it applies the law.
Garlinghouse questioned the necessity of each ETF undertaking the same journey by Grayscale Investments until the courts smacked down the Genlser-led Commission. He cited the case where the court faulted SEC as illegally rejecting the bid to convert Grayscale Bitcoin Trust (GBTC) to Bitcoin ETF.
Stablecoins Law Necessary for Integration in Global Economy
Garlinghouse reflected on the Grayscale Investments win over SEC and paved the way for the new perspective that culminated in the approval of crypto ETF. The momentum would likely translate to acceptance of other crypto investment products later in 2024.
Garlinghouse admitted that the stablecoin market’s rise to prominence has surprised many parties, particularly in solving the actual needs. The executive noted that stablecoins deserve regulatory clarity for their integration into the global economy.
The optimism Ripple Labs’ chief executive expressed coincides with the Bitcoin ETF gaining momentum to generate $1.8 billion in trading volume on Tuesday, January 16. Fidelity, BlackRock and Grayscale command a considerable share, translating to $1.6 billion of the Tuesday trading volume.
Bloomberg ETF senior analyst Eric Balchunas contrasted the spot Bitcoin ETF attractiveness by highlighting that other 500 ETFs unveiled in the US last year only realized $450 million on Tuesday.
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