ripple President Brad Garlinghouse says the U.S. Securities and Exchange Commission (SEC) has agreed that his company's founders helped create it, even though his fintech company has been at odds with regulators for years. We are confident that we will approve crypto exchange traded funds (ETFs).
fund manager bitwise submitted For XRP ETF at the beginning of the month. If the fund is approved, it will be traded on stock exchanges and investors will be able to access XRP without actually owning the cryptocurrency.
The filing came as a surprise because Ripple, whose founders developed XRP, has been embroiled in a legal battle with the SEC since 2020. Still, Garlinghouse doesn't seem concerned.
“For me it's inevitable [that an XRP ETF will be approved]Ripple CEO Garlinghouse said “There is demand from institutions and retailers who want access to this asset class,” he added in a Bloomberg TV interview on Wednesday.
Another asset management firm, Canary Capital, also filed to launch an XRP-based ETF this month.
Garlinghouse said the SEC ultimately approved the Bitcoin and Ethereum ETF, a product launched by top Wall Street firms, even though it clearly didn't want to.
However, given the ongoing dispute with Ripple, the XRP ETF may not be approved any time soon. Back in 2020, SEC regulators strike The company filed a $1.3 billion lawsuit for selling unregistered securities in the form of XRP.
Last year was Ripple won a partial court victory It filed a lawsuit against regulators when a judge ruled that programmatic sales of XRP to retail investors did not qualify as securities.
The judge ruled that there were institutional sales contracts worth $728 million. did Although it corresponds to an unregistered securities sale, the news is still shocked and was widely interpreted as a victory for the industry.
In response to this ruling, the SEC asked for Ripple was fined a hefty $2 billion. New York court at the time ordered Although the company only paid a penalty of $125 million, this was also widely interpreted as a major victory for Ripple and the crypto industry.
The SEC asked for $2 billion, but the court found they had overreached and reduced the request by up to 94%. We have made it clear that we respect the court's decision and will continue to grow our company.
This is a victory for Ripple, the industry, and the rule of law. SEC…
— Brad Garlinghouse (@bgarlinghouse) August 7, 2024
SEC is Currently on appeal Judge's decision. Last week, Ripple's chief legal officer Stuart Alderroti said: said decryption In an interview, he said he did not expect the appeal to be successful and believed the move would “backfire” on the agency.
XRP is the 7th largest cryptocurrency by market capitalization. Although it is not controlled by Ripple, Ripple's founders created XRP and their company still uses the asset for money transfer solutions.
According to CoinGecko, XRP remains well below its 2018 all-time high of $3.40. the The current price is At $0.51, it has fallen about 11% in the last month.
editor andrew hayward
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