Ripple CEO regrets slow engagement with US regulators

Ripple Labs CEO Brad Garlinghouse acknowledged that the company should have engaged with U.S. regulators much earlier in its journey. 

He expressed this sentiment during an appearance at DC Fintech Week on October 23, stating that both Ripple (CRYPTO:XRP) and the broader crypto industry are now "trying to make up for lost time" following legal enforcement actions. 

Garlinghouse reflected on his increased visits to Washington, D.C., over the past few years compared to previous years, admitting, “I look back on that, and I regret that. I think we made a mistake by not leaning in earlier.” 

Ripple is currently embroiled in a legal battle with the Securities and Exchange Commission (SEC), a regulator that many U.S. crypto executives perceive as antagonistic toward the industry. 

Earlier this year, the SEC secured a partial victory in its lawsuit against Ripple, with a judge ruling that Ripple's XRP token was sold as an unregistered security to institutional buyers. 

However, the court determined that XRP was not a security when sold to retail investors, a ruling the SEC has since appealed. 

Garlinghouse criticised the U.S. for lagging in crypto regulations compared to other countries, blaming SEC Chair Gary Gensler for what he termed a “reign of terror” against the industry. 

He also accused Senator Elizabeth Warren of disseminating misinformation about cryptocurrencies, which he believes has contributed to the negative perception of the sector. 

Part of Ripple’s strategy to engage with regulators involves education about the crypto space. 

Garlinghouse remarked, “It doesn’t help that you had Sam Bankman-Fried showing up on Capitol Hill with cargo shorts and selling something that turned out not to be exactly what was represented,” referencing the damage done to the industry’s reputation. 

Additionally, Ripple has been active in political donations, contributing nearly $50 million this election cycle to the pro-crypto FairShake PAC, which supports candidates from both major parties. 

In a Bloomberg Television interview the same day, Garlinghouse expressed confidence that XRP would eventually be offered as a spot exchange-traded fund (ETF) in the U.S. 

He noted that the over $21 billion in investments into spot Bitcoin ETFs since January indicates strong demand from both institutional and retail investors. 

Garlinghouse stated, “XRP interest has grown,” and mentioned that there have already been several ETF filings for XRP. 

He believes that an XRP ETF will perform well due to the active community supporting the cryptocurrency. 

He concluded that the emergence of crypto ETFs signifies increasing institutional participation in the crypto market, which could positively impact prices for various cryptocurrencies, including XRP.

At press time, the XRP price was $0.5284.