Crypto Analyzer

Ripple CEO: Approval of XRP, Solana (SOL), Cardano (ADA) ETFs Is Inevitable – Times Tabloid

**Inevitable Expansion of Crypto ETFs Beyond Bitcoin and Ethereum**

The landscape of cryptocurrency exchange-traded funds (ETFs) is evolving, with growing advocacy for ETFs encompassing a wider array of digital assets beyond Bitcoin and Ethereum. Following the recent approval of Ethereum ETFs, there has been a surge of interest in extending ETF offerings to include other prominent cryptocurrencies such as XRP, Solana (SOL), and Cardano (ADA).

Brad Garlinghouse, the CEO of Ripple, expressed his confidence in the inevitable approval of new ETFs for these digital assets. Speaking at Consensus 2024 in Austin, Texas, Garlinghouse acknowledged the regulatory hurdles such ETFs may face but emphasized their potential benefits. He believes that the expansion of the ETF market to include assets like XRP, Solana, and Cardano is not a question of “if” but “when.”

The recent momentum in approving Ethereum ETFs can be attributed to the increasing political influence of the cryptocurrency industry. Cryptocurrency has become a significant topic in upcoming elections, pressuring regulators to engage more decisively with the asset class. Noteworthy endorsements from figures like former U.S. President Donald Trump, who has embraced the crypto market and started accepting crypto donations, further underscore the industry’s rising influence.

However, despite the optimism surrounding the expansion of ETF offerings, Garlinghouse remains critical of the current regulatory environment in the U.S., particularly the Securities and Exchange Commission’s (SEC) approach to cryptocurrencies. He argues that the lack of clear regulations creates uncertainty for businesses and stifles innovation within the American crypto sector.

Garlinghouse specifically points out the SEC’s reliance on outdated regulatory frameworks, such as the Howey Test, to classify cryptocurrencies as securities. The recent disclosure of redacted documents related to the SEC’s 2018 declaration that Ethereum was not a security has also highlighted the lack of transparency surrounding regulatory decisions in the crypto space.

The uncertainties stemming from regulatory ambiguity have led Ripple to focus its hiring efforts outside the U.S., aiming to operate in jurisdictions with clearer regulatory guidelines. This strategic shift indicates the impact of regulatory uncertainties on business decisions within the crypto industry.

As the crypto market continues to evolve and expand, the approval of ETFs for a broader range of digital assets appears to be on the horizon. Clearer regulatory frameworks and transparent decision-making processes will be crucial for fostering innovation and sustainable growth in the cryptocurrency sector.