Ripple CEO Brad Garlinghouse has made headlines with his prediction of a significant reset for the cryptocurrency industry, regardless of the outcome of the upcoming U.S. presidential election. Speaking at the 8th Annual Washington DC Fintech Week, Garlinghouse expressed his belief that the crypto sector is on the verge of a transformative change, calling attention to the current administration’s stance on digital assets.
Critique of the Biden Administration
Garlinghouse did not hold back in his criticism of the Biden administration, labeling it as “hostile” to the crypto industry. He noted that the regulatory environment has been challenging, which he believes has stifled innovation and growth in the sector. According to Garlinghouse, this reset will be necessary for the industry to move forward, irrespective of whether Donald Trump or Kamala Harris secures the presidency.
This indicates his optimism that changes in the regulatory framework could foster a more conducive environment for cryptocurrency growth.
Personal Experience of “De-Banking”
Garlinghouse shared his own experience of being “de-banked,” revealing that Citibank had severed its banking relationship with him due to his association with the crypto industry. He recounted how the bank, where he had been a customer for 25 years, only gave him five days to move his funds. This personal account underscores the broader issue of de-banking affecting individuals within the cryptocurrency sector, as Garlinghouse remarked.
This reflects the increasing challenges that crypto professionals face as traditional banking institutions become more cautious in their dealings with the industry.
XRP ETF Approval: An Inevitable Milestone
Garlinghouse is also optimistic about the future approval of an XRP exchange-traded fund (ETF), describing it as “inevitable.” He pointed to the successful launch of Bitcoin ETFs, which attracted significant investments, as evidence of growing institutional interest in cryptocurrency. Several firms, including Bitwise Asset Management, have filed applications with the SEC for an XRP ETF, and Garlinghouse believes that approval could lead to a substantial market rally. He remarked on the potential positive impact of XRP ETF approval.
With recent optimism surrounding Bitwise’s revised Ripple ETF filing, many experts anticipate a significant influence on XRP’s price and the overall crypto market.
Ongoing Legal Challenges with the SEC
Despite Garlinghouse’s optimistic outlook, Ripple continues to face challenges in its legal battle with the SEC. Legal expert Fred Rispoli criticized Garlinghouse and Ripple Chairman Chris Larsen for their partial settlement with the SEC, suggesting they missed an opportunity to seek a full dismissal of all charges. Rispoli argues that the SEC does not have sufficient evidence to prove recklessness in institutional XRP sales, raising questions about the long-term implications of the ongoing case.
Conclusion
As the U.S. elections approach, Garlinghouse’s insights into a potential reset of the crypto industry reflect a mix of optimism and caution. While he anticipates positive changes in regulatory frameworks and the likelihood of an XRP ETF approval, the ongoing legal challenges with the SEC present significant hurdles. The crypto community will be closely monitoring developments in both the political landscape and Ripple’s legal situation in the coming months.
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