Brad Garlinghouse, CEO of Ripple, remains confident about XRP’s future success in the cryptocurrency space, emphasizing the token’s unique utility in payments.
Speaking on the Thinking Crypto podcast, Garlinghouse shared his insights on the native token’s competitive positioning, Ripple’s upcoming projects, and the SEC’s handling of the crypto market.
Payment Utility and Long-Term Success
Garlinghouse reaffirmed his belief that the asset’s capabilities in payments make it stand out in the broader crypto market. He stressed the token’s advantages, including speed, cost-efficiency, and scalability, which he believes will allow it to thrive even in an increasingly competitive space.
He also suggested that regulatory clarity, achieved through Ripple’s legal battles, would solidify the token’s place as a winner in the crypto industry. According to Garlinghouse, the resolution of regulatory uncertainty surrounding the asset positions it for long-term success, despite the challenges it has faced over the years.
Ripple’s Legal Victory and the SEC’s Role
Ripple’s legal conflict with the U.S. Securities and Exchange Commission (SEC) was a focal point of the conversation. Garlinghouse took issue with the SEC’s past involvement in the crypto market, arguing that it unfairly gave Ethereum (ETH) an advantage over XRP. He recalled that the token was the second-largest cryptocurrency by market capitalization before the SEC’s actions shifted the market dynamics.
In particular, he referenced the 2018 remarks by former SEC Director William Hinman, who declared that Ethereum was not a security. This statement gave Ethereum regulatory clarity, allowing it to grow in the market, while XRP was left in a more uncertain position. Shortly after, Ripple was hit with a lawsuit by the SEC, which claimed that sales of the asset violated federal securities laws.
Regulatory Challenges and ETFs
Another issue discussed was the potential launch of an exchange-traded fund (ETF) for the token. Garlinghouse was asked whether the SEC might block any efforts to introduce an XRP ETF, given the agency’s contentious history with Ripple. He noted that the SEC had filed its appeal against Ripple’s legal victory just hours after Bitwise Asset Management submitted an application for an ETF on October 2.
The Ripple CEO suggested the timing of the SEC’s appeal may have been strategic, hinting that the agency could be sending a signal about its stance on an XRP ETF. Although the case is ongoing, Garlinghouse remains optimistic about the token’s potential to stand out in the market, regardless of its regulatory obstacles.
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SEC’s Inconsistent Position
When discussing the SEC’s behavior, Garlinghouse did not mince words, characterizing the agency as acting beyond its legal authority. He cited a recent case involving Bitnomial, which proposed launching XRP futures. The SEC warned that the offering could violate securities laws, maintaining its stance that the token is a security.
Garlinghouse criticized the SEC for relying on documents from Ripple’s lawsuit, even though the agency lost key parts of the case. A federal court had ruled that the token was not a security, undercutting the SEC’s argument. However, the regulator continued to reference the lawsuit as part of its case against Bitnomial’s futures contract.
Despite regulatory challenges and ongoing legal battles, Garlinghouse remains firm in his belief that the token is positioned for long-term success. He emphasized the token’s strong use case for payments and its newfound regulatory clarity as key factors that will allow it to emerge as a winner in the crypto industry.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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