XRP, Solana, Cardano ETFs Are Inevitable, Ripple’s CEO Asserts
Ripple’s CEO, Brad Garlinghouse, predicts that exchange-traded funds [ETFs] for cryptocurrencies like XRP, Solana [SOL], and Cardano [ADA] are on the horizon. Speaking at the Consensus 2024 conference, Garlinghouse expressed his certainty that these ETFs would soon be available, following the recent approval of spot Bitcoin [BTC] and Ethereum [ETH] ETFs. He stated,
“It’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana [SOL] ETF, there’s gonna be a Cardano [ADA] ETF and that’s great.”
Ripple, which has a strong connection to XRP, has been closely watching regulatory developments. The approval of key filings for ether ETFs by the U.S. Securities and Exchange Commission [SEC] indicates a changing regulatory landscape. However, these ETFs still need final approval before they can begin trading. Cathie Wood, CEO of ARK Invest, noted during the conference that crypto’s role as an election issue has influenced these regulatory actions.
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Regulatory Challenges
Despite these advancements, Ripple’s Garlinghouse pointed out that significant regulatory obstacles remain. He described these challenges as “speed bumps” that will eventually be overcome. A primary concern for Garlinghouse is the lack of regulatory clarity from Washington. He criticized SEC Chair Gary Gensler for not clearly stating whether ether is a security, even though Gensler claims that the current rules are clear and don’t need updating.
This regulatory uncertainty has historical roots. In 2022, the SEC faced criticism for withholding emails and notes from William Hinman’s 2018 speech, which declared ether not a security. Ripple, involved in a legal battle with the SEC, obtained access to these redacted documents, revealing extensive internal SEC discussions about ETH’s status.
He further took shots at the reliance on the Howey Test, a decades-old measure to determine modern crypto regulations. He states,
“Somehow, [Gensler] believes that the Orange Grove tests from 70-80 years ago provide clear rules for crypto. It makes no sense and is a travesty because the SEC’s stance has become such a political liability, affecting even the presidential race.”
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