On Wednesday, Ripple CEO Brad Garlinghouse gave an interview to Maria Bartiromo on Fox Business to discuss the impact of the Trump administration’s pro-crypto stance on the digital asset industry, Ripple’s strategy, and regulatory clarity.
Garlinghouse explained Ripple’s focus on improving cross-border payments by leveraging blockchain technology and its native digital asset, XRP. He noted that the U.S. has lagged behind other nations in embracing crypto due to what he described as a “hostile” approach by the Biden administration, which led to regulatory uncertainty and hindered innovation. This regulatory climate, he claimed, has pushed 95% of Ripple’s business outside the United States.
The recent U.S. presidential election, however, has renewed optimism within the crypto industry. Garlinghouse pointed out that the Trump administration appears more welcoming to crypto, setting the stage for growth in the world’s largest economy.
Garlinghouse expressed confidence that the Trump administration’s deregulatory approach would provide much-needed clarity for the industry. He argued that the current regulatory framework, which often relies on outdated laws like the 1946 Howey Test, does not adequately address the complexities of modern digital assets.
He highlighted the importance of clear regulations for fostering innovation and enabling the U.S. to regain its leadership in the crypto space, emphasizing Trump’s potential to “make crypto great again” in the United States.
Garlinghouse also discussed Ripple’s plans to launch its own stablecoin, RL USD (Ripple USD), aimed at addressing institutional needs in the cross-border payments space. He noted that the stablecoin market, currently led by Tether, represents a $170 billion industry with significant room for growth. Ripple aims to capitalize on this by providing faster, cheaper, and more reliable payment solutions for financial institutions.
Garlinghouse addressed the importance of appointing crypto-savvy leaders to key regulatory positions, particularly at the U.S. SEC and CFTC. He emphasized that past SEC leadership under Gary Gensler had been both politically motivated and inconsistent, citing federal court rulings that described the SEC’s actions as “arbitrary and capricious.”
Garlinghouse sees Trump’s commitment to replacing Gensler with a leader who understands the crypto industry is seen as a positive step. He believes this move, coupled with Congressional collaboration, can resolve existing regulatory gaps and restore U.S. dominance in the digital asset space.
Looking ahead, Garlinghouse sees the U.S. becoming a hub for crypto innovation under a more supportive administration. He is optimistic that with clear rules and a collaborative approach between government and industry, the U.S. can establish itself as the “heartbeat of the crypto and blockchain industry” within the next decade.
As CNBC reported on Thursday, the SEC has confirmed that Gensler will step down from his role on January 20, 2025. This decision will allow President-elect Donald Trump to immediately appoint a replacement, potentially signaling a significant shift in the SEC’s regulatory approach.
Although SEC commissioners typically serve five-year terms, which would have allowed Gensler to stay until at least 2026, his decision to leave ahead of schedule was widely anticipated. His departure provides the incoming administration with an opportunity to reshape the SEC’s leadership and priorities.
Reflecting on his time at the SEC, Gensler emphasized the agency’s commitment to protecting investors, fostering capital formation, and ensuring fair and efficient markets. In a press release, he expressed gratitude for the dedication of the SEC staff and their efforts to maintain the strength of the U.S. capital markets:
“The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike. The staff comprises true public servants. It has been an honor of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world.“
Also, yesterday, ETF Stream reported that WisdomTree Physical XRP (XRPW) had become available for trading on several major exchanges, including Deutsche Börse, SIX Swiss Exchange, Euronext Paris, and Euronext Amsterdam. It features a total expense ratio (TER) of 0.50%.
This exchange-traded product (ETP) tracks the Compass Crypto Reference Index XRP, offering physically backed exposure to Ripple’s spot price. XRP operates as an open-source, decentralized blockchain tailored specifically for payments, providing a faster and more sustainable alternative to Bitcoin.
Alexis Marinof, head of Europe at WisdomTree, explained that the launch of XRPW expands the firm’s lineup of physically backed cryptocurrency ETPs. He noted that these products are designed to integrate seamlessly into multi-asset portfolios, offering a regulated and efficient way for investors to access the cryptocurrency market. Marinof highlighted that cryptocurrency ETPs are increasingly becoming the preferred method for investing in digital assets.
At the time of writing, XRP is trading at around $1.42, up 27% in the past 24-hour period.
