Ripple CEO Brad Garlinghouse believes that the SEC will approve ETFs based on crypto tokens other than bitcoin, including XRP, which will make the market safer and stronger for the investment community.

Ripple CEO Brad Garlinghouse believes that the US Securities and Exchange Commission (SEC) will approve exchange-traded mutual funds (ETFs) based on crypto tokens other than bitcoin.

Brad Garlinghouse on Potential XRP ETF Approval

CEO Ripple Brad Garlinghouse membahas potensi Komisi Sekuritas dan Bursa AS (SEC) untuk menyetujui dana yang diperdagangkan di bursa (ETF) berdasarkan XRP dan token kripto lainnya selain bitcoin dalam sebuah wawancara dengan Bloomberg pada hari Selasa.

Commenting on the possibility of securities regulators approving non-crypto crypto ETFs, Garlinghouse said:

I think it makes sense that there will be other ETFs.

Drawing a parallel with the stock market, the Ripple executive explained: "You don't really want exposure to one stock or one company. You generally want to think about risk diversification."

"I think it's inevitable that there will be a lot of ETFs around different tokens," he stressed, noting that Ripple would welcome an XRP ETF. “In my opinion, it makes this market safer, it makes it stronger, and it's good for the investment community,” the executive stressed, “So I think we're going to see other [crypto] ETFs.

When asked if he would welcome an XRP ETF, Garlinghouse replied:

We would certainly welcome that and I think it's inevitable that there will be multiple ETFs around different tokens. I think you'll even see ETFs potentially around the basket.

He added that "the sad reality of what we're seeing with bitcoin ETFs is that it's only because the courts forced the hand of the SEC, and really Chairman Gensler's hand," that the SEC ultimately approved a spot bitcoin ETF. The executive emphasized: "In my opinion, it makes this market safer, it makes it stronger, and it's good for the investment community." Several companies have applied to the SEC to launch ethereum spot ETFs.

Standard Chartered said last month that it hoped securities regulators would approve a spot ethereum ETF in May. However, some are skeptical because SEC Chairman Gary Gensler has not explicitly stated his views on whether ether (ETH) is a security. The SEC chairman has said several times that most crypto tokens other than bitcoin are securities.

Regarding the SEC's enforcement-centric approach to regulating the crypto industry, Garlinghouse said: "My view is the SEC has consistently lost." Highlighting the SEC's losses in the Ripple and Grayscale cases, the Ripple chief noted that the presiding judge in the Coinbase case seemed "quite skeptical about some of the SEC's arguments." Garlinghouse said he believes the SEC will stop regulation by enforcement when the agency "realizes that they're losing consistently or you're asking Congress to lean in and write a new law." However, the Ripple CEO noted: “That might be difficult in an election year.

Do you think the SEC will approve spot ETFs based on other cryptocurrencies, including XRP? Let us know in the comments section below.