Ripple ‘made a mistake’ not talking to regulators early, says CEO

As a seasoned researcher with extensive experience in the crypto industry, I can’t help but echo Brad Garlinghouse’s sentiments about Ripple’s missteps in engaging with US regulators early on. Having navigated the complex landscape of regulations and policies myself, I understand the importance of open dialogue with regulatory bodies to avoid potential legal entanglements.


Brad Garlinghouse, CEO of Ripple Labs, acknowledges that his company should have collaborated more with U.S. regulators earlier. This delay has resulted in both Ripple and the cryptocurrency sector finding themselves playing catch-up, following regulatory action and enforcement issues.

In recent years, I’ve taken many more journeys to Washington D.C. compared to the years prior,” Garlinghouse stated during his October 23 visit at Fintech Week in DC.

“I look back on that, and I regret that. I think we made a mistake by not leaning in earlier, and we’re trying to make up for lost time to some degree.”

As an analyst, I find myself immersed in the ongoing legal tussle involving Ripple, one of the U.S.-based cryptocurrency companies. This company, like several other industry executives, has found itself in a contentious dispute with the Securities and Exchange Commission (SEC), a regulatory body that some within the U.S. crypto community view as unfriendly and biased towards the industry.

This year, a section of the SEC’s lengthy legal battle with Ripple was resolved when a court ruled that their XRP (XRP) digital token had been offered for sale to institutional investors without proper registration as a security.

Initially, XRP wasn’t considered a security during sales to individual investors through cryptocurrency platforms. However, the Securities and Exchange Commission (SEC) recently challenged this classification in a higher court, an issue that Ripple intends to contest.

Garlinghouse addressed the Washington, DC audience by stating that the U.S. is lagging behind other nations in cryptocurrency regulations, attributing this to SEC Chair Gary Gensler’s “harsh crackdown” on the sector, and criticizing Senator Elizabeth Warren for disseminating incorrect information about digital currencies.

Ripple ‘made a mistake’ not talking to regulators early, says CEO

He added that part of “leaning in” is “just education” and showing that the crypto space has “serious people doing serious things,” adding:

“It doesn’t help that you had Sam Bankman-Fried showing up on Capitol Hill with cargo shorts and selling something that turned out not to be exactly what was represented.”

“That hurt the whole industry, that hurt Ripple,” Garlinghouse said.

Additionally, he noted that Ripple has been quite engaged in its political contributions, pouring approximately $50 million during this election period into the FairShake PAC, a group that supports both Republican and Democratic politicians who are pro-cryptocurrency.

Back on October 21st, finding myself as a proud crypto investor and Ripple supporter, I was thrilled to learn that one of the co-founders, Chris Larsen, had generously contributed $10 million to a Political Action Committee (PAC) backing Democratic presidential nominee Kamala Harris. This move not only highlights his commitment to her campaign but also underscores the potential influence cryptocurrency pioneers can have in shaping our political future.

XRP ETF is “inevitable”

During a Bloomberg Television interview, Garlinghouse expressed his view that it was simply a matter of time before XRP could be made available in a standard U.S. exchange-traded fund (ETF).

He said the over $21 billion that’s flowed into spot Bitcoin (BTC) ETFs since January “is very clearly demonstrating there’s demand from institutions, there’s demand from retail to access this asset class.”

According to Garlinghouse, there’s been a significant increase in interest towards XRP. He noted that several ETF proposals related to XRP have surfaced, leading him to believe that it is only a matter of time before we witness not just Bitcoin and Ethereum, but also an XRP-based Exchange Traded Fund (ETF).

To date, just two asset management firms – Bitwise and Canary Capital – have submitted applications to the Securities and Exchange Commission for the creation of a Spot Ripple (XRP) ETF.

According to Garlinghouse, an XRP investment fund is likely to perform favorably due to the currency’s engaged and dynamic global community, which includes both U.S. and international participants.

He added crypto ETFs are part of a trend of “more and more institutionalized participation in the crypto industry.”

He expressed his belief that the trend will persist, “It seems likely that this will occur,” he said. “Indeed, I believe it contributes to an increase in the prices of various cryptocurrencies, such as XRP.

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2024-10-24 06:29