In a candid interview with CNBC at the World Economic Forum in Davos on January 16, Ripple CEO Brad Garlinghouse openly criticized Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC). Garlinghouse accused Gensler of being a “political liability” and expressed his disagreement with the SEC’s rigid stance on crypto regulation and repeated legal actions against the industry.
Garlinghouse said:
I do think the chair of the SEC, Gary Gensler, is a political liability in the United States. And I think he’s not acting in the interests of the citizenry, he’s not acting in the interests of the long-term growth of the economy, and I don’t understand it.
He further speculated that a change in leadership at the SEC would be beneficial for the American people. Garlinghouse criticized Gensler’s unchanging and rigid approach, especially in labeling most crypto assets as securities. Despite the recent approval of a Bitcoin ETF by the SEC, Garlinghouse accused Gensler of hindering the “long-term growth of the economy” and not acting in the best interests of the citizens.
The Ripple CEO drew a sharp contrast between the regulatory environment in the United States and the more proactive approaches adopted by the European Union and other jurisdictions. Expressing concern about the U.S. falling behind in establishing comprehensive crypto regulations, Garlinghouse emphasized the need for a more positive regulatory landscape to maintain global competitiveness.
While acknowledging the potential for legislative movements in 2024 due to it being an election year, Garlinghouse also pointed out that stablecoin regulation is likely to take center stage soon due to its widespread use.
On the topic of the recently approved Bitcoin ETF, Garlinghouse discussed its potential implications for other cryptocurrencies like Ethereum (ETH). He predicted the inevitability of additional ETFs and highlighted the market’s appetite for broader offerings.
Ripple’s Future Expansion
Shifting the focus to Ripple’s future, Garlinghouse outlined the company’s expansion plans into new markets and services, including payment solutions and custody services. Despite his positive outlook for the crypto market in 2024, he emphasized Ripple’s commitment to compliance and solving real customer problems. Additionally, he commented on the evolving dynamics of tech investments, signaling a shift toward more stable and mature market environments. However, Garlinghouse did not confirm whether Ripple would pursue its own ETF offering.
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