“It’s only a matter of time,” stated Brad Garlinghouse, CEO of Ripple, during his appearance at Consensus 2024 in Austin, Texas. Garlinghouse predicts that ETFs for XRP, Solana, and Cardano will eventually gain approval, despite the current regulatory hurdles.
During his address, Garlinghouse emphasized the inevitability of more crypto exchange-traded funds (ETFs) emerging following the approval of spot bitcoin (BTC) ETFs and the progress of Ethereum’s ether (ETH) ETFs. “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 remarked, noting Ripple’s strong connection to XRP.
Recently, ether ETFs made significant progress with the U.S. Securities and Exchange Commission approving key filings. However, final approval is still required before they can start trading.
Cathie Wood, CEO of ARK Invest, also noted during Consensus that the approval of these ether ETFs is partly because cryptocurrency has become an election issue. Garlinghouse acknowledged the regulatory hurdles that lie ahead but believes they are mere speed bumps in the long run.
Garlinghouse criticized the SEC’s lack of clear regulations for the crypto industry. “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,” Garlinghouse said.
In 2022, the SEC withheld confidential emails and notes from William Hinman’s 2018 speech, which declared ether not a security. Ripple, which is currently in a legal battle with the SEC, obtained access to these redacted documents, revealing extensive internal SEC discussions about ether’s status as a security.
Garlinghouse expressed his frustration with the U.S., which he views as lacking 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 origins. “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 highlighted Ripple’s international focus, noting that last year 75% of Ripple’s hiring was outside the U.S., and this year it’s about 60%, with major offices in London, Geneva, and Singapore. These hiring trends, he said, reflect Ripple’s emphasis on regulatory clarity and customer locations.
“Getting the regulatory posture right in the United States is just critical,” Garlinghouse concluded.
