Ripple’s CEO blasts the SEC for continuing to view XRP as a security

At the recent Swell conference, Ripple CEO Brad Garlinghouse said that interest in XRP exchange-traded funds (ETFs) is growing. In an interview with Thinking Crypto, he was surprised by the timing of several ETF filings, expecting to see more such products. The approval of a Bitcoin ETF earlier this year points to a trend that could include Ethereum, Solana and XRP ETFs.

Ripple's role in ETF developments

When asked about Ripple's involvement with ETF issuers, Garlinghouse explained that the nature of digital assets allows anyone to create an ETF without Ripple's involvement. However, Ripple is a proponent and supporter of more XRP ETFs, seeing them as beneficial to the ecosystem.

Regulatory Barriers: The Impact of the SEC

Garlinghouse also raised concerns about the US Securities and Exchange Commission (SEC) and its potential ban on XRP ETF applications. The SEC filed an appeal after two ETF applications were filed for XRP, asking if this was an attempt to send a market signal. He criticized the position of the SEC, a federal judge has already decided that XRP is not a security, but the SEC continues to prove otherwise.

“I think the SEC is acting outside the law, period. I think you know, literally, as you can see in the lawsuit, a federal judge ruled that XRP is not a security in itself. Yet the SEC is calling people, well, we still think XRP is a security. That's not ethical. (Sikh) said.

He described the agency's behavior as “acting outside the law” and emphasized the need for regulatory transparency, especially from Congress. Garlinghouse expressed hope that changes in SEC leadership would lead to a better regulatory environment. They argued that the SEC's current strategies are creating frustration for crypto companies and limiting access to banking services.