Ripple CEO calls SEC chair Gensler’s regulatory approach a ‘political liability’
Garlinghouse accused Gensler of not acting in "the best interest of the citizenry" and hindering the "long-term growth of the economy."
Ripple CEO Brad Garlinghouse openly criticized SEC chair Gary Gensler and said his rigid stance toward crypto regulation and repeated legal actions have made him a “political liability.”
Garlinghouse made the statement during an interview with CNBC at the World Economic Forum in Davos on Jan. 16. He also shared his thoughts on potential ETFs connected to other cryptocurrencies and Ripple’s outlook for 2024.
Political agenda
Garlinghouse described Gensler’s approach as unchanging and overly rigid, even after the SEC approved a Bitcoin ETF . He accused Gensler of not acting in “the best interest of the citizenry” and hindering the “long-term growth of the economy.”
He questioned the rationale behind Gensler’s consistent labeling of most crypto assets as securities, suggesting it reflects a political agenda rather than an economic or protective one. Garlinghouse added:
“I think Gary Gensler is doing the same thing over and over again, expecting to win in court, despite repeated losses.”
The Ripple CEO contrasted the U.S. regulatory environment with more proactive approaches in the EU and other jurisdictions. He expressed concern about the U.S. lagging in establishing comprehensive crypto regulations, potentially impacting its competitive stance globally.
However, he also forecasted possible legislative movements in 2024 because it is an election year. He added that the U.S. has not been left behind yet and will remain competitive if the regulatory landscape shifts to a more positive direction.
Garlinghouse said that stablecoin regulation was the most likely to come into force soon due to their widespread use — echoing the sentiments of Circle CEO Jeremy Allaire .
ETFs and 2024 outlook
The Ripple CEO also shared his thoughts on the broader implications of the SEC’s decision to approve a Bitcoin ETF and how it might affect the future of ETFs for other cryptos, such as Ethereum (ETH).
Garlinghouse said the rapid increase in ETH’s value following the approval of spot Bitcoin ETFs indicates the b067ed8a-e918-4f68-a154-c8d8312d119b’s appetite for broader ETF offerings. He said:
“I think it’s a certainty. I’m not going to put a horizon on the time, but I think there will be other ETFs for sure.”
However, he did not confirm whether Ripple would pursue an ETF offering.
Shifting the focus to Ripple, Garlinghouse talked about the company’s expansion into new markets and services, including payment solutions and custody services. He mentioned Ripple’s robust financial standing as a foundation for future growth and possible acquisitions.
He shared a positive outlook for the crypto market in 2024, emphasizing the company’s commitment to compliance and solving real customer problems. He also commented on the evolving dynamics of tech investments, indicating a shift towards more stable and mature market environments.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Goldman Sachs Global Stock Market Outlook: AI Capital Expenditure to Peak Next Year, Earnings Growth to "Slow Down Significantly", Cloud Giants Become "Defensive Assets"
Goldman Sachs’ 2027 Global Equity Strategy points out that the AI capital expenditure boom is nearing its peak, and global profit growth will slow significantly. S&P 500 earnings growth is expected to drop from 36% to 11%, with depreciation pressures gradually emerging. However, cloud giants’ valuations have adjusted to a forward P/E of 19.7, lower than the staples sector, and are classified as “relatively defensive” assets. Goldman Sachs predicts an S&P 500 target of 8,700 points and suggests overweighting the US and Japan, while underweighting Europe.
With $135 billion worth of Nvidia stock, will Jensen Huang cash out?
After Jensen Huang stepped down, his Nvidia holdings of approximately 812 million shares, valued at $135 billion, became a major pressure on the stock price. Any reduction in holdings is subject to both legal and market constraints: shares can only be sold compliantly after the disclosure of any undisclosed negative information, and the volume is equivalent to six trading days’ total market transactions, meaning large-scale cashouts would have to be spread over several months.
Will the traditional Christmas rally still happen in the US stock market this year?
After a simultaneous technical and position-based recovery in the US stock market, Goldman Sachs, Morgan Stanley, and JPMorgan have successively signaled a year-end rebound. Extremely light positions, mean reversion of valuations, and seasonal support together create conditions for a short squeeze. However, global manufacturing import price inflation has annualized at around 24%, surpassing the pandemic peak, and the inflation bill will come due intensively in the first quarter of next year. Goldman Sachs warns that once the year-end rally materializes, it may exhaust future upside potential.
Anthropic IPO Roadshow: CEO Says "Doesn't Care About Market Conditions", Hopes to "Underpromise and Overdeliver"
As Anthropic gears up for its IPO, CEO Amodei remains deliberately low-key during the roadshow, emphasizing "under-promise and over-deliver," and appears calm regarding market volatility at the time of listing. In response to fluctuations in the AI sector and the Nvidia situation, Amodei stated he is not particularly concerned about the specific month of listing or market conditions, and frankly admits that allocation of computing power is "the most fundamental business challenge."
Crypto prices
More
