Ripple CEO admits to error in not consulting regulators early

Ripple Labs CEO Brad Garlinghouse has acknowledged that his company should have collaborated with US regulators earlier. Now, the company and the crypto industry are working to catch up after facing legal enforcement actions.

Garlinghouse admitted during DC Fintech Week on Oct. 23 that he regrets not intervening sooner. Ripple is among the US crypto companies entangled in a legal battle with the Securities and Exchange Commission, an agency that many US crypto executives criticize for being hostile and unjust towards the industry.

In a recent court ruling, the SEC emerged victorious in a lawsuit against Ripple, alleging that its XRP token was sold as an unregistered security to institutional investors. However, the SEC’s claim that XRP was not a security when sold to retail traders on crypto exchanges is being appealed to a higher court, a move that Ripple plans to contest.

During his speech in Washington DC, Garlinghouse criticized the US for lagging behind in crypto regulation compared to other nations. He blamed SEC Chairman Gary Gensler for initiating a “reign of terror” against the industry and accused Senator Elizabeth Warren of spreading misinformation about crypto.

Garlinghouse highlighted the importance of education in the crypto space and emphasized the need for serious individuals engaging in the industry. He also mentioned the negative impact of certain events on the industry, including Sam Bankman-Fried’s appearance on Capitol Hill and Ripple’s legal challenges.

Ripple has been actively involved in political donations, with nearly $50 million transferred to the FairShake PAC, which supports pro-crypto candidates from both parties. Ripple co-founder Chris Larsen recently donated $10 million to a PAC backing Democratic presidential candidate Kamala Harris.

In a Bloomberg television interview, Garlinghouse predicted that a spot exchange-traded fund (ETF) for XRP in the US is inevitable. He cited the significant inflow of funds into Bitcoin ETFs this year as evidence of institutional and individual demand for access to crypto assets, including XRP.

Garlinghouse mentioned the growing interest in XRP and the possibility of an XRP ETF in the future. Only two asset managers have applied to launch a spot XRP ETF with the SEC so far. Garlinghouse believes that an XRP fund would perform well due to the active community supporting the cryptocurrency.

He expressed optimism about the trend of increasing institutional participation in the crypto industry and its positive impact on prices of various cryptocurrencies, including XRP. Garlinghouse emphasized the upward pressure on prices that crypto ETFs can create.

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