XRP Surges 27% as Ripple CEO Touts Trump’s Pro-Crypto Vision
In a recent interview with Fox Business host Maria Bartiromo, Ripple CEO Brad Garlinghouse shared his insights on the evolving regulatory landscape for cryptocurrency in the United States. He highlighted the potential impact of the Trump administration’s pro-crypto stance, Ripple’s strategy for cross-border payments, and the urgent need for clearer regulatory frameworks.
Ripple’s Global Focus Amid U.S. Challenges
Garlinghouse emphasized Ripple's commitment to revolutionizing cross-border payments through blockchain technology and its native asset, XRP. Despite these innovations, he criticized the Biden administration for its "hostile" regulatory stance, which has pushed 95% of Ripple's business operations outside the U.S. He noted that this has left the U.S. trailing behind nations that have embraced crypto-friendly policies.
However, with Donald Trump’s return to the presidency, optimism is growing within the crypto community. Garlinghouse expressed hope that Trump’s deregulatory approach could usher in an era of clarity and growth for the industry, positioning the U.S. as a leader in blockchain innovation once again.
Regulatory Clarity: A Game-Changer
One of the key obstacles to innovation, according to Garlinghouse, is the outdated legal framework, such as the 1946 Howey Test, which fails to address the complexities of modern digital assets. He called for regulatory reforms that align with current technological advancements.
Garlinghouse highlighted the potential benefits of replacing SEC Chair Gary Gensler with a leader who understands the crypto industry. This change, coupled with a collaborative effort between Congress and the administration, could eliminate regulatory ambiguity and restore confidence in the U.S. as a hub for crypto innovation.
Ripple’s Stablecoin Initiative
Ripple is also making strides in the stablecoin market with plans to launch RL USD (Ripple USD), targeting institutional clients in the cross-border payments sector. Garlinghouse identified the $170 billion stablecoin market, currently dominated by Tether, as a significant growth opportunity. Ripple aims to offer faster, cheaper, and more reliable payment solutions to financial institutions.
A Shift in SEC Leadership
As reported by CNBC, SEC Chair Gary Gensler will step down on January 20, 2025, providing the Trump administration with the opportunity to appoint a successor. This leadership change could signal a major shift in regulatory priorities, creating a more supportive environment for crypto businesses.
Reflecting on his tenure, Gensler highlighted the SEC’s commitment to investor protection and market integrity, though his policies have faced criticism from the crypto industry for stifling innovation.
XRP’s Growing Institutional Presence
Meanwhile, XRP continues to gain traction among institutional investors. WisdomTree recently launched its XRP-backed exchange-traded product (ETP), XRPW, on major European exchanges, including Deutsche Börse and Euronext. With a total expense ratio of 0.50%, the ETP offers physically backed exposure to XRP’s spot price, catering to investors seeking a regulated avenue into cryptocurrency markets.
At the time of writing, XRP was trading at $1.42, marking a 27% surge in the past 24 hours, underscoring its growing appeal as a leading digital asset in the payments space.
A Promising Future for Crypto
Looking ahead, Garlinghouse envisions a transformative era for the U.S. crypto industry under a pro-crypto administration. With regulatory clarity, supportive leadership, and innovations like Ripple’s stablecoin, he believes the U.S. can reclaim its status as a global hub for blockchain and digital assets within the next decade.