Ripple's CEO Criticizes SEC's 'Rigid' Crypto Policy

By: Eva Baxter

Ripple's CEO, Brad Garlinghouse, has openly critiqued SEC chair, Gary Gensler, labeling his approach to crypto regulations and continuous legal actions as a "political liability." This comment was made during Garlinghouse's recent interview at the World Economic Forum.

He criticized Gensler's stance on most crypto assets as securities and suggested that it was motivated by political interests rather than economical or protective measures. Garlinghouse went on to compare the regulatory environment in the U.S. to the more proactive measures taken in the E.U. and other jurisdictions, voicing concerns about the U.S. potentially losing competitive standing globally due to lack of comprehensive crypto regulations.

Despite this criticism, Garlinghouse also speculated that the U.S. hasn't been left behind and can still be competitive with a positive shift in regulation. He further highlighted the growing acceptance and potential regulation of stablecoins due their widespread usage. On the topic of ETFs, Garlinghouse expressed certainty about the emergence of new ETFs, considering the positive market response in the aftermath of SEC approval of Bitcoin ETFs. However, he refrained from confirming whether Ripple itself is considering an ETF offering.

Beyond criticism of the SEC, Garlinghouse also discussed Ripple's plans for expansion into new markets and services such as payment solutions and custody services, leveraging their strong financial position for potential growth and acquisitions.