In a recent interview with FOX Business, Ripple CEO Brad Garlinghouse shared his thoughts on the impact of the approval of spot Bitcoin ETFs by the Securities and Exchange Commission (SEC) in the United States.
The interview, held at the World Economic Forum in Davos, covered a range of topics, including the growing importance of cryptocurrencies, legal challenges and the future of the industry.
The conversation began with a discussion of the SEC’s approval of spot Bitcoin ETFs, which resulted in an 8% drop in the price of Bitcoin last week. Garlinghouse underlined the importance of this approval, describing it as further confirmation from institutions and government bodies that points to the growing integration of cryptocurrencies into the traditional financial environment.
As CEO of Ripple, Garlinghouse has provided insight into how Ripple essentially works, providing blockchain technologies and solutions to businesses, with a focus on financial institutions. He noted that Ripple is initially focused on providing a payment solution for cross-border payments, addressing the historically slow and expensive nature of such transactions.
According to Garlinghouse, Ripple’s technologies provide significant cost reductions and increased speed and efficiency for financial institutions.
The conversation then turned to the regulatory challenges facing the cryptocurrency industry, focusing on SEC Chairman Gary Gensler. Garlinghouse expressed disappointment with the SEC’s approach, accusing Gensler of prioritizing lawsuits over clear regulatory frameworks. He criticized the SEC’s attempts to “regulate through sanctions” and called for clear rules to guide the industry.
Garlinghouse emphasized the importance of results and the organization of activities rather than the technology itself. She suggested that the Commodity Futures Trading Commission (CFTC) might be a more natural regulator for the cryptocurrency industry than the SEC, highlighting the need to adhere to principles such as Know Your Customer (KYC) and Anti-Money Laundering (AML).
Regarding stablecoins, Garlinghouse agrees with Circle CEO Jeremy Allaire, who predicted the possibility of the United States passing legislation addressing stablecoin issues in the first half of the year. He welcomed the potential regulations, calling them appropriate and a priority in Congress.
The interview concluded with a discussion on the challenges of regulating the cryptocurrency industry globally. Garlinghouse acknowledged the challenges but said it was important to comply with policies such as KYC and AML. You expressed confidence in the resilience of the sector and in the positive developments expected in 2024.