Ripple CEO Brad Garlinghouse on how the crypto industry will rebuild

Summary

SEC Chair Gary Gensler maintains skepticism of crypto despite Bitcoin ETF approval, still calling most assets securities. Ripple CEO Brad Garlinghouse predicts eventual crypto regulation clarity in the US, though timing remains uncertain. He discusses Ripple's growth into custody along with other verticals, stock buybacks providing investor liquidity without urgency to IPO under hostile US regulators. Garlinghouse conveys optimism on crypto in 2024 with increased compliance and solving real-world problems, expecting retail caution but long-term trajectory mirroring early internet firms.

Takeaways

• 😊 Gary Gensler and the SEC have consistently lost court cases related to crypto regulation
• 👍 There is optimism that future SEC leadership will be more constructive in working with the crypto industry
• 🔥 Brad sees clear demand and growth potential for crypto custody services
• 📈 Ripple plans to continue growing through acquisitions in 2024
• 😎 Brad believes putting compliance first will put the crypto industry on a good trajectory
• 🎯 Ripple remains focused on blockchain infrastructure for enterprises
• 🤔 Brad doesn't see going public in the US as a priority given the regulatory environment
• 💡 Brad sees crypto following the dot-com hype cycle with long term potential
• ⏳ There is optimism that US crypto regulation will pass in 2024, likely around stablecoins first
• 🙌 Brad welcomes AI displacing crypto as the 'cool kid' and sees it as a sign of maturity

Q & A

What is Brad Garlinghouse's view on the SEC's stance towards crypto after the approval of the Bitcoin ETF?

Garlinghouse believes the SEC and its chair Gary Gensler have not changed their skeptical tone towards crypto despite the Bitcoin ETF approval. He thinks Gensler is repeating the same stance unsuccessfully and has become a political liability by not acting in the best interests of US citizens and the economy.

How does Garlinghouse view the prospect of an Ethereum ETF being approved soon?

Garlinghouse is confident there will be other crypto ETFs approved after Bitcoin, including for Ethereum, though he does not want to speculate on the exact timeline.

What are the chances of comprehensive crypto regulation being passed in the US in 2024 according to Garlinghouse?

Garlinghouse believes there is a good chance legislation around stablecoins specifically will pass in 2024, as the US Treasury wants it. He thinks regulatory clarity is needed on stablecoins and will benefit the crypto industry overall.

How can the US regain leadership in crypto according to Garlinghouse?

If clearer crypto regulations are passed in the US, Garlinghouse believes it will help the US compete again as a leading jurisdiction for crypto. Other countries have taken the lead partly due to lack of regulatory clarity in the US.

When does Garlinghouse expect the Ripple vs SEC lawsuit to conclude?

Most of the case has been resolved in Ripple's favor already with the charges against Garlinghouse and Larson dismissed. Only a small part around institutional XRP sales remains open but Garlinghouse feels confident of the outcome after repeated wins.

What are Ripple's main areas of focus and growth in 2024 according to Garlinghouse?

Ripple will continue growing its core RippleNet payments business and newly acquired custody business, which is seeing high demand already. It will likely expand into other verticals through acquisitions given its strong balance sheet.

Why is an IPO not a priority for Ripple currently according to Garlinghouse?

With no immediate need to raise capital and an unfavorable regulatory environment in the US, Ripple is not prioritizing an IPO right now. Shareholder liquidity is still important though, hence the share buybacks.

How does Garlinghouse explain the more cautious crypto retail investor sentiment currently?

Garlinghouse thinks retail investors may be more cautious given the crypto winter following hype and speculation. But he encourages long-term thinking, as the internet went through similar cycles before mass adoption.

How does Garlinghouse feel about crypto losing the hype to AI currently?

Garlinghouse feels it's good crypto is more boring now, as hype cycles are common with new technologies like AI. He believes crypto fundamentals remain strong for long-term growth.

What are Garlinghouse's thoughts on stablecoins being a key focus of US crypto regulation?

He believes regulatory clarity is needed on stablecoins, which have proven utility already. It will benefit the industry and bring any issues to light. Major stablecoins like USDT and USDC are here to stay in his view.