Cryptocurrency exchange-traded funds (ETFs) as many cryptocurrency communities advocate ETFs for the digital assets they support Bitcoin and is expected to move beyond Ethereum. Ethereum ETFs were recently approved. This approval was followed by ETF requests for XRP, Solana, Cardano and other cryptocurrencies.
Ripple CEO Brad Garlinghouse expressed his belief that the ETF market will grow. Speaking at the Consensus 2024 conference in Austin, Texas, Garlinghouse said the approval of new ETFs is inevitable. However, he stated that this would require a significant regulatory process. He believes that these obstacles are surmountable. Moreover, he highlighted the potential benefits that such ETFs can provide.
Brad Garlinghouse stated:
“I think it’s just a matter of time and an XRP ETF is inevitable. One solana There will be a (SOL) ETF, there will be a Cardano (ADA) ETF, and that’s great.”
Ethereum ETFAn important factor influencing the recent progress of cryptocurrencies appears to be the increasing political influence of cryptocurrency. Industry leaders note that crypto has become a major agenda item in the upcoming elections, putting pressure on regulators to address the asset class more clearly.
Former US President Donald Trump has supported the crypto market and recently started accepting crypto donations. Additionally, prominent pro-crypto figures such as John Deaton are expected to enter the government in key positions, such as Deaton’s run for the US Senate.
What’s Next for the Crypto Market in the US?
Garlinghouse is critical of the current regulatory environment in the US, particularly the SEC’s stance on cryptocurrencies. The lack of clear regulations creates uncertainty for businesses, hindering innovation in the American crypto sector.
Garlinghouse’s criticism, SEC’s cryptocurrency It stems from the approach of classifying units as securities. He argues that it is unreasonable to apply the Howey Test, a decades-old legal framework, to a new asset class. He notes that the SEC’s adherence to outdated regulations is a barrier to progress and limits the potential of the U.S. cryptocurrency market.
This lack of clarity is further reinforced by redacted documents related to a 2018 speech by former SEC official William Hinman, in which he stated that Ethereum is not a security.
The release of these documents, even with significant redactions, revealed extensive internal discussions within the SEC regarding the classification of Ether. This uncertainty in the SEC’s decision-making process contributes to the overall uncertainty in the American crypto industry.
The consequences of this uncertain regulatory environment are also reflected in Ripple’s recent hiring trends. Garlinghouse announced that the company has significantly increased its international recruiting efforts, with a significant portion of its new hires coming from outside the United States.
In September 2023, Garlinghouse announced that Ripple would focus its 2024 hiring outside the US in late 2023. This shift indicates that the company is focusing its operations on markets with clearer regulatory frameworks.
