ETFs
Ripple CEO believes launch of XRP, Cardano and Solana ETFs is inevitable
Spot crypto ETFs are the hot trends in the crypto space. With the recently launched Bitcoin spot ETFs making waves and ETH spot ETFs flourishing, many are anticipating the launch of similar products for other altcoins.
At the Consensus Conference in Austin, Texas, Brad Garlinghouse, CEO of Ripple, addressed the topic. He noted that the launch of spot ETFs following XRP, Cardano and Solana will be launched sooner or later.
Ripple CEO Says Spot ETFs for XRP, SOL and ADA Are Coming
Amid the long legal battle with the US Securities and Exchange Commission, Ripple is bullish on the XRP ETF. CEO Garlinghouse revealed this during his speech at the CoinDesk 2024 Consensus Conference in Austin, Texas.
Ripple CEO is optimistic about launching spot ETFs for XRP, Solana and Cardano. He noted that the SEC would approve more ETF products after approving Ethereum spot ETFs.
Spot Bitcoin ETFs are already trading in the industry and have attracted more attention thanks to their growth.
Although XRP is now taking non-secure status via the Ripple vs. SEC lawsuit, the case is still not over. Additionally, Solana and Cardano were among the cryptocurrencies classified as securities by the SEC in its lawsuit against Binance and Coinbase.
So, despite his enthusiasm for these ETF products, Garlinghouse noted that they will face strict regulatory hurdles. He suggested that the process of approving an XRP, ADA or SOL ETF would take a long time.
The SEC notably rejected spot Bitcoin ETFs for several months before approving them. Additionally, the regulator delayed spot approval of the Ethereum ETF before endorsing – approve their 19b-4 application forms on May 23. However, issuers still cannot launch products until they have completed further processes with the regulator.
Following the approval, the crypto community expects other crypto assets to join the bandwagon. While some people are voting for Solana as the next ETF, most in the XRP community believe that XRP will not be left behind.
Garlinghouse condemns US regulatory approach to cryptocurrency
Furthermore, in his speech, the Ripple CEO criticized the regulatory approach to cryptocurrencies in the United States. He noted that SEC Chairman Gary Gensler attempted to qualify Ethereum as a security but failed in the face of congressional requests.
While Gensler says the laws are explicit and comprehensive and don’t require any updates to account for cryptography, Garlinghouse thinks otherwise.
Garlinghouse claims that the SEC relies on the 1946 Howey test for its preliminary test on crypto assets. He pointed out that such a practice is inappropriate because several decades have passed since the development of the Howey test. Additionally, the world is continually evolving with innovations and other technological advancements.
Additionally, Garlinghouse revealed that Ripple chose most of its new staff from outside the United States due to regulatory concerns. However, he noted that the country’s regulatory atmosphere is gradually changing.
The broader crypto space views President Biden’s administration as divisive through its policies, particularly due to the SEC’s regulatory approach.
However, the pressure has lessened as authorities attempt to involve the crypto community due to the upcoming presidential election. In addition, Republican candidate Donald Trump gained popularity by adopting and supporting crypto.
The technical report editorial policy is focused on providing useful, accurate content that provides real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including the latest technological developments, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that every topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards and every article is 100% written by real authors.