21 November 2024
In a recent interview with FOX Business, Brad Garlinghouse, CEO of Ripple Labs, shared insights on the so-called “Trump trade” impacting crypto prices, as evidenced by Bitcoin’s recent streak of consecutive all-time highs over the past 48 hours.
Garlinghouse also discussed how Ripple, and the broader digital asset industry, fit into the upcoming regulatory landscape expected under President-elect Donald Trump in the coming year.
Ripple CEO Optimistic About Trump’s Pro-Crypto Stance
Garlinghouse emphasized that since its inception, Ripple has focused on addressing the inefficiencies of traditional cross-border payments, which he described as “slow and expensive.” By utilizing XRP, the company aims to streamline these transactions, making them faster and more cost-effective.
However, the CEO criticized the Biden administration’s stance on digital assets, referring to it as an “unlawful war” against the industry. He expressed optimism that with Trump’s pro-crypto approach, the landscape may be transforming.
When asked about the potential for increased revenue opportunities in the US under the upcoming regulatory changes, Garlinghouse explained that the US Securities and Exchange Commission’s (SEC) lawsuit against XRP had effectively “frozen” Ripple’s market potential in the country.
Currently, 95% of Ripple’s customer base is located outside the US, with Garlinghouse pointing out that the company cannot fully realize growth in a market where regulatory clarity is lacking.
Garlinghouse observed that while the cryptocurrency industry is flourishing in countries like China, Japan, the UK, and Switzerland, the US has lagged behind in embracing digital assets.
Ripple’s CEO expressed hope that the anticipated deregulation under Trump would lead to clearer guidelines, allowing agencies like the SEC and the Commodity Futures Trading Commission (CFTC) to play a constructive role in shaping the industry.
Garlinghosue criticized the existing regulatory framework, particularly the application of the Howey Test, which he believes fails to adequately address the unique characteristics of the crypto sector. He also underscored the need for updated regulations that reflect the realities of an industry that has developed significantly over the past decade.
US As Digital Asset Hub In Coming Years
During the interview, FOX Business highlighted comments from Coinbase’s Chief Policy Officer, Faryar Shirzad, regarding the private meeting between Trump and Brian Armstrong, CEO of Coinbase.
Shirzad noted that Trump has expressed a willingness to engage with the crypto industry, fostering a vision for the US to become the global leader in digital assets. Garlinghouse echoed these sentiments, recognizing Coinbase’s influential role in advocating for the cryptocurrency agenda during the election campaign.
As speculation mounts regarding potential candidates for the SEC chair position under Trump—names like Dan Gallagher, Teresa Goody, and Commissioner Mark Uyeda have surfaced—Garlinghouse emphasized the importance of the new chair working collaboratively with Congress to address regulatory gaps that contribute to confusion in the market.
Garlinghouse concluded with an optimistic outlook, stating that he believes a new era for cryptocurrency is on the horizon in the US. He envisions the country becoming a central hub for digital assets and blockchain technology over the next five to ten years.
At the time of writing, XRP is trading at $1.10, marking a massive 104% surge in just two weeks since Trump’s election victory. However, the token is still trading 67% below its all-time high of $3,040, which it reached nearly seven years ago.
Featured image from DALL-E, chart from TradingView.com