Ripple CEO Blasts SEC for Continuing to View XRP as a Security

At the recent Swell conference, Ripple CEO Brad Garlinghouse addressed the growing interest in XRP exchange-traded funds (ETFs). In an interview with Thinking Crypto said that while the timing of multiple ETF filings surprised him, he expected to see more products like these emerge. He pointed out that the approval of a Bitcoin ETF earlier this year hinted at a trend that would likely include Ethereum, Solana, and XRP ETFs.

Ripple’s Role in ETF Developments

When asked about Ripple’s involvement with ETF issuers, Garlinghouse explained that the nature of digital assets allows anyone to create an ETF without Ripple’s participation. However, Ripple is supportive and advocates for more XRP ETFs, seeing them as beneficial for the ecosystem.

Regulatory Hurdles: The SEC’s Influence

Garlinghouse raised concerns about the U.S. Securities and Exchange Commission (SEC) and its potential to block XRP ETF applications. He pointed out that the SEC filed an appeal shortly after two ETF applications for XRP were submitted, questioning whether this was an attempt to send a market signal. He criticized the SEC’s stance, arguing that a federal judge had already ruled that XRP is not a security, yet the SEC continues to assert otherwise.

“I think the SEC is acting outside of the law, period. I think you have a rogue agency who, you know, literally, as you’re seeing in the lawsuit, a federal judge has ruled that XRP in and of itself is not a security. Yet the SEC is calling people saying, well, we still think XRP is a security. This is not ethical behavior,” he said. (Sic)

He described the agency’s behavior as “acting outside of the law” and explained the need for regulatory clarity, especially from Congress. Garlinghouse expressed hope that changes in SEC leadership would lead to a better regulatory environment. He argued that the SEC’s current strategies are causing frustration among crypto companies and limiting their access to banking services.