Spot crypto ETFs are the buzzing trends within the crypto space. With the recently launched spot Bitcoin ETFs making waves and spot ETH ETFs sprouting up, many anticipate the launch of similar products for other altcoins.
During the Consensus conference in Austin, Texas, Brad Garlinghouse, Ripple CEO, weighed on the topic. He noted that the launch of spot ETFs tracking XRP, Cardano, and Solana will launch sooner or later.
Ripple CEO Says Spot ETFs for XRP, SOL, And ADA Are Coming
Amid the long-lasting legal battle with the US Securities and Exchange Commission, Ripple is optimistic for XRP ETF. CEO Garlinghouse revealed this during his speech at the CoinDesk Consensus Conference 2024 in Austin, Texas.
The Ripple CEO is optimistic about the launch of spot ETFs for XRP, Solana, and Cardano. He noted that the SEC will approve more ETF products after approving spot Ethereum ETFs.
Already, spot Bitcoin ETFs are trading in the industry and have attracted more attention through their growth.
Though XRP now takes the status of a non-security via Ripple vs. SEC lawsuit, the case is still not over. Moreover, Solana and Cardano were among the cryptocurrencies termed securities by the SEC in its lawsuit against Binance and Coinbase.
So, despite his enthusiasm for these ETF products, Garlinghouse noted that they will face strict regulatory obstacles. He suggested that the process of approving an XRP, ADA, or SOL ETF would take a long time.
Notably, the SEC rejected spot Bitcoin ETFs for several months before endorsing them. Also, the regulator has delayed the spot Ethereum ETF approval before endorsing their 19b-4 application forms on May 23. However, the issuers still can’t launch the products till they complete other processes with the regulator.
Following the approval, the crypto community is anticipating other crypto assets to join the train. While some people are voting for Solana as the next ETF, most members of the XRP community believe XRP will not be left out.
Garlinghouse Condemns US Regulatory Approach On Cryptocurrency
Also, in his speech, the CEO of Ripple criticized the crypto regulatory approach in the United States. He noted that SEC Chair Gary Gensler tried to label Ethereum as a security but failed amid congressional queries.
While Gensler argues that the laws are explicit and comprehensive and require no updates to accommodate crypto, Garlinghouse thinks otherwise.
Garlinghouse says the SEC relies on the 1946 Howey Test for its preliminary test on crypto assets. He noted that such a practice is inappropriate as many decades have passed since the Howey Test was developed. Moreover, the world is continuously evolving with innovations and other technological advancement.
Additionally, Garlinghouse disclosed that Ripple picked most of its new staff from outside the US due to regulatory issues. However, he noted the regulatory atmosphere in the country is gradually changing.
The broader crypto space sees President Biden’s administration as confrontational through its policies, particularly due to SEC’s regulatory approach.
However, the pressure has dropped as the authorities try to engage the crypto community due to the upcoming presidential election. Also, GOP candidate Donald Trump has gained popularity by adopting and supporting crypto.
