Ripple Labs CEO, Brad Garlinghouse, recently projected that the Securities and Exchange Commission may approve more crypto-based ETFs. He noted that the ETFs will pave the way for other cryptocurrency investment funds that are likely to be listed in 2024.
He was speaking at CNBC at the World Economic Forum in Davos, Switzerland on 16th January. During the media briefing, he noted that the firm will acquire approval for XRP ETF. At the same time, he pointed out that an Ethereum ETF may also get regulatory verification.
He retained that the ETF approval was a certainty. The executive refrained from sharing an exact timeline but assured that there are going to be more ETFs. The executive also responded to a series of questions from SEC officials for high-profile approval of Bitcoin without direct regulatory guidelines issued for Bitcoin spot market trading by the regulatory agency.
Garlinghouse was critical of the regulatory approach of the SEC head noting that it was not a good idea to take the same route again and again and expect different results.
Ripple CEO Criticizes SEC Actions
Commenting on the matter of SEC Chief Gary Gensler, Garlinghouse remarked that he has become a politically controversial figure. He further stated that SEC is not making the best decisions to ensure long-term progress and development of the citizens and economy.
He further noted that Gensler has faced a considerable amount of pressure from the justice system of the United States in regard to the questions regarding his regulatory choices.
He further stated that the reason that a spot Bitcoin ETF was approved in the US was because the courts told the SEC that the agency had taken an arbitrary and capricious approach towards the investment fund. He also retained that if Gensler had to be hit by the US justice system once again, it would be a sad affair but he maintained that the ends will justify the means.
As per his statement, stablecoins filled the gap by addressing real problems facing the sector. He noted that there is still a need for a detailed and specified regulatory framework to bring more clarity to stablecoin issuers. He also emphasized that stablecoin regulations are going to be a good step that could benefit the entire blockchain industry.
Ripple Labs Rejects SEC Motion to Examine Financial Documentation
Ripple Labs defense has brought a motion against SEC’s request to review additional financial records regarding enterprise sales of XRP. Lawyers representing the firm noted that the US justice system should not rule in favor of the regulatory interpretation that the SEC has presented.
The firm has also claimed that SEC has used all of its interrogatories in the form of written questionnaires sent to Ripple Labs prior to trial. The defense has also highlighted another issue with the uniform interrogatories issued by the SEC nothing that the agency does not have the right to issue more. The next trial between Ripple and SEC is set to take place in April, 2024.
SEC has been working on the Ripple Labs case since December, 2020. However, the lawsuit was settled in July, 2023 granting partial victory to XRP nothing that XRP sales on secondary trading platforms cannot be constituted as sales of unregistered securities.