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Ripple CEO Brad Garlinghouse shed more light on the RLUSD stablecoin, related regulations, and litigation with the U.S. Securities and Exchange Commission. The cryptocurrency executive also mentioned talk about the XRP ETF and persistent concerns about its listing. The upcoming US election remains a major deciding factor in cryptocurrency regulation as candidates develop their plans in this area.
Ripple CEO hints at stablecoin opportunities
In a recent interview on the Thinking Crypto podcast, Garlinghouse said the company’s extensive use of stablecoins contributed to this decision. At one point, Ripple was responsible for minting 20% of USDC due to its high institutional flows. This leads us to the conclusion that there is currently an opportunity in the market as the company is driving market speed and liquidity.
“…Given the fact that we are driving a lot of liquidity and frankly we have a very strong balance sheet, we came to the conclusion that there was an opportunity here and we decided to invest in Ripple. I felt there was an opportunity to be active in this market. There is a lot of competition in cryptocurrencies, but for me this is about growing the market. ”
Garlinghouse added that despite regulatory concerns in some jurisdictions, USDC will continue to appreciate while Tether will remain. However, these regulatory hurdles could increase competition and reduce the total market share of our assets. For his part, he emphasized plans for RLUSD to become fully compliant and said he expects the industry to lift stablecoin regulations as early as next year.
Additionally, the company emphasized regulatory compliance when rolling out Yield for users. Ripple is under the SEC’s legal net following a years-long lawsuit alleging that the company offered unregistered securities. The lack of cryptocurrency regulation has created headwinds for the U.S. market, leading to developers moving to jurisdictions with clearer rules.
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No surprises with XRP ETF applications
Recent applications for the XRP ETF by large institutional investors have sparked positive sentiment from many quarters. Garlinghouse added that while he was surprised by the timing, he wasn’t surprised by the outcome. Since launching its Bitcoin ETF in January, Ripple’s CEO and other crypto executives have hinted at filing for more funds with the SEC.
According to him, this is in line with investor requests, pointing to applications for Ethereum products and Solana, presenting an XRP ETF application. Finally, Garlinghouse pointed out that these products will serve as new investment windows and bring more capital into the XRP ecosystem.
