Ripple CEO: SEC’s XRP ETF Decision Signals Crypto Progress

Ripple CEO Brad Garlinghouse has responded to the U.S. Securities and Exchange Commission’s (SEC) acknowledgment of Grayscale’s proposal to convert XRP into an exchange-traded fund (ETF). He emphasized that such a step was “inevitable,” despite past opposition from some vocal critics. Garlinghouse has consistently predicted that a spot XRP ETF would eventually gain approval in the U.S. Even though this seemed unlikely a year ago, he remained confident in the eventual outcome.

Ripple President Expresses Optimism

Monica Long, Ripple’s president, has also voiced confidence in XRP being next in line for spot ETF approval. Earlier today, analyst Nate Geraci stated that the SEC’s decision to consider the proposal sent a strong signal about XRP. He pointed out that despite ongoing litigation involving Ripple, the agency’s move suggests a shift in its approach to cryptocurrency-based financial products.

Recently, Bloomberg analysts estimated a 65% chance that the SEC would approve an XRP ETF this year. Now, with the SEC’s acknowledgment of Grayscale’s application, these odds could increase. While the agency still holds the authority to reject an XRP ETF, many believe that a more crypto-friendly administration could boost approval chances.

SEC Weakens Crypto Enforcement Unit

The SEC has also taken steps to diminish its cryptocurrency enforcement division. According to a former SEC official, the unit is now practically “dead and buried.” Ripple executives welcomed the demotion of chief litigator Jorge Tenreiro, who frequently challenged crypto industry leaders. His reassignment signals a potential shift in how the SEC handles crypto-related cases.

Grayscale is not the only company aiming to launch an XRP ETF. Bitwise and WisdomTree have also expressed interest in bringing such a product to the market.

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Pro-XRP attorney Jeremy Hogan has predicted that the SEC’s approval process for an XRP ETF could take up to a year. However, with shifting regulatory dynamics and growing institutional interest in crypto, many remain hopeful that approval will come sooner rather than later.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.