The US Securities and Exchange Commission made history last week by giving the green light to ProShares Bitcoin exchange-traded funds (ETFs).
Brad Garlinghouse – CEO of Ripple
Keep talking Fox businessBrad Garlinghouse, CEO of Ripple, said the decision could be good for XRP as it shows that at least one cryptocurrency is gaining clarity and security.
But then interviewer Charles Gasparino speculated about the decision to approve a Bitcoin ETF angered Ripple executives. In this, the SEC approval is proof that they pick winners and losers.
“I think everyone at Ripple is really upset that the SEC is approving a Bitcoin ETF while they are leading XRP and Ripple.”
Is there a bias in the approval of Bitcoin ETFs?
In an interview with CNBC, SEC chairman Gary Gensler made a distinction between the Bitcoin Futures ETF and the Bitcoin Spot ETF, which has yet to be approved.
Gensler emphasized that the SEC protects investors. Since the Commodity Futures Trading Commission (CFTC) had also overseen Bitcoin futures contracts for four years, he indicated that accepting Bitcoin futures ETFs would be easier from an investor protection perspective.
“I think you have a product that has been monitored by the US Federal Regulatory Agency and the CFTC for four years. At the same time, it is a product within our jurisdiction known as the Investment Company Act of 1940. “
It should be noted that the base value of the ProShares Bitcoin Futures ETF is still BTC. As Gasparino points out, the SEC continues to hit “XRP and Ripple” even if the lawsuit still shows the agency is pursuing improper purposes.
The waves go on
Ripple CEO Brad Garlinghouse has again criticized the SEC, in which he reiterated that the agency does not have a clear framework for the crypto industry.
Garlinghouse covered important issues related to the SEC’s motives. In addition, he pointed out the impact of the Ripple Labs lawsuit on both the company and XRP.
Throughout the lawsuit, XRP is up more than 172% from $ 0.4 to $ 1.1 at press time. The fintech company has since expanded its business to Europe and Southeast Asia. However, their trip to the United States was a different story.
XRP Price Chart | Source: Tradingview
“We haven’t really been able to operate in the United States since the SEC filed the lawsuit. Because of this uncertainty, it was, is and will continue to be so. Outside of the US, however, we had a disappointing year. “
As mentioned earlier, this is not the first point he makes. While expecting the SEC to proceed with the case, Brad Garlinghouse said:
“I think the entire industry benefits from clarity and certainty about how digital assets can be regulated. If the digital asset doesn’t exist in the US, it still exists in other countries. “
In the said lawsuit, the plaintiffs have repeatedly asked the court for an extension, the defendants argue that this is “seriously harmful”.
“We are the promoters because we believe this is clearly not a violation of US securities laws. XRP is not a security and that is ultimately proven in court. That’s why we want to see the judge as soon as possible. “
As before, Ripple’s CEO quickly repeated:
“There is no script. We will make a decision when there is absolute certainty about what XRP will be in the future. “
Garlinghouse has no intention of settling down
To end the case against Ripple, some SEC speculation has no choice but to settle. In this way, the supervisory authority can limit further damage to its reputation and initiate further discretionary actions.
Last month, Ripple’s legal team said it had no plans to reach an agreement with the SEC and intended to take the case to court.
Garlinghouse also reiterated this point of view in an interview with Fox Business. He added that if the SEC continues to insist that XRP is a security, there will be nothing to be resolved.
“One thing Ripple cares about more than anything, for the entire XRP ecosystem, is its clarity that XRP is not a security. If that is not included in the comparison, nothing can be done about it. “
Based on this opinion, the SEC may have offered a settlement, but on the condition that Ripple “gets out of the water” and recognizes XRP as collateral.
Garlinghouse’s opinion on whether or not there will be an XRP-based ETF?
While the lawsuit is unlikely to be resolved or settled anytime soon, the wave of optimism about the Bitcoin ETF approval has raised many related questions. One of them is whether the SEC will approve an XRP-based ETF.
Instead of answering the question directly, Garlinghouse answered indirectly. When asked about the prospects for the XRP exchange-traded fund in the US, he simply said:
“Why does the SEC choose winners and losers?”
Since Bitcoin requires enormous amounts of electricity, according to Garlinghouse, the prioritization doesn’t even fit into the SEC chairman’s climate agenda. The Ripple CEO has long criticized Bitcoin’s energy consumption, believing that XRP is 100,000 times more energy efficient than Bitcoin.
Garlinghouse also shared his concerns about Gensler’s silence on the regulatory status of ETH. Especially since Ether ETF is expected to gain popularity after approval.
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According to AZCoin News