WEBVTT - Ripple Labs CEO Brad Garlinghouse Talks Crypto

0:00:02.520 --> 0:00:07.440
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:07.360 --> 0:00:10.040
<v Speaker 2>Here with Us now Live. Ripple CEO Brad.

0:00:09.800 --> 0:00:13.119
<v Speaker 3>Garling House, And of course this has been a long battle.

0:00:13.760 --> 0:00:17.680
<v Speaker 3>How much certainty does this provide is the entire case over.

0:00:18.280 --> 0:00:22.119
<v Speaker 4>So this provides a lot of certainty for Ripple, for

0:00:22.160 --> 0:00:25.040
<v Speaker 4>Frankly me personally, because the SEC had sued me. The

0:00:25.079 --> 0:00:28.880
<v Speaker 4>SEC has abandoned their appeal, and so they filed suit

0:00:28.920 --> 0:00:31.520
<v Speaker 4>in December of twenty twenty. We won on the key

0:00:31.560 --> 0:00:33.560
<v Speaker 4>parts of the case. In the summer of twenty three,

0:00:34.080 --> 0:00:37.159
<v Speaker 4>Judge Torres made a ruling that XRP in and of

0:00:37.200 --> 0:00:40.559
<v Speaker 4>itself was not a security. It's almost overbatim quote. The

0:00:40.600 --> 0:00:44.800
<v Speaker 4>SEC filed an appeal about eight months ago, and what

0:00:44.880 --> 0:00:46.199
<v Speaker 4>they've now agreed is.

0:00:46.240 --> 0:00:47.839
<v Speaker 1>They're going to drop that appeal.

0:00:48.280 --> 0:00:50.760
<v Speaker 4>We still have a cross appeal pending, and so we

0:00:50.880 --> 0:00:53.080
<v Speaker 4>go from being defendant really too plaintiff.

0:00:53.479 --> 0:00:54.320
<v Speaker 1>So we now are.

0:00:54.240 --> 0:00:56.880
<v Speaker 4>The driver's seat to determine how we want to proceed.

0:00:57.200 --> 0:00:57.960
<v Speaker 2>Are you dropping it?

0:00:58.720 --> 0:01:01.320
<v Speaker 4>We're going to see it feels a lot better to

0:01:01.360 --> 0:01:04.480
<v Speaker 4>be on the offense than the defense. You know, four years,

0:01:04.520 --> 0:01:07.200
<v Speaker 4>we spent over one hundred and fifty million dollars defending

0:01:07.240 --> 0:01:10.120
<v Speaker 4>that case. Not just for Ripple, but for the whole industry.

0:01:10.200 --> 0:01:12.840
<v Speaker 4>I think it was really important that this SEC, the

0:01:12.880 --> 0:01:16.479
<v Speaker 4>Gensler SEC, was really trying to bully and continued law

0:01:16.520 --> 0:01:20.039
<v Speaker 4>fair filing lawsuits and lawsuits and lawsuits against crypto companies.

0:01:20.280 --> 0:01:21.959
<v Speaker 4>That's over now, and I think that's great for the

0:01:22.040 --> 0:01:24.559
<v Speaker 4>US crypto industry and frankly great for crypto at large.

0:01:24.600 --> 0:01:26.200
<v Speaker 3>I mean, to that end, if you're looking at a

0:01:26.200 --> 0:01:28.479
<v Speaker 3>new SEC, why not drop the case at this point?

0:01:28.520 --> 0:01:30.640
<v Speaker 3>Why not clear the pay or why not clear the water?

0:01:31.080 --> 0:01:32.480
<v Speaker 1>Well, that certainly is an option.

0:01:32.520 --> 0:01:35.560
<v Speaker 4>I mean, again, it's clear the SEC has said, you

0:01:35.560 --> 0:01:37.880
<v Speaker 4>know they I think in retrospect never would have brought

0:01:37.880 --> 0:01:38.400
<v Speaker 4>this case.

0:01:39.440 --> 0:01:42.600
<v Speaker 1>The judge did rule in certain.

0:01:42.319 --> 0:01:46.000
<v Speaker 4>Instances back in twenty fifteen and twenty sixteen some XRP

0:01:46.200 --> 0:01:49.840
<v Speaker 4>sales that we sold to accredited investors to institutions that

0:01:49.880 --> 0:01:52.880
<v Speaker 4>those had constituted a security, and so there was a

0:01:52.880 --> 0:01:55.320
<v Speaker 4>one hundred and twenty five million dollar fine that's sitting

0:01:55.360 --> 0:01:59.160
<v Speaker 4>in escrow. We wouldn't mind having that back. That's on

0:01:59.240 --> 0:02:01.840
<v Speaker 4>the table, and I think they're some nuances to know

0:02:01.840 --> 0:02:04.240
<v Speaker 4>how this will play out. But it was important for us,

0:02:04.440 --> 0:02:06.600
<v Speaker 4>for really the whole XRP community for them to know

0:02:06.680 --> 0:02:09.359
<v Speaker 4>that the cases for all intense purposes, the case is over.

0:02:09.360 --> 0:02:11.440
<v Speaker 1>The SEC is no longer pursuing that to that.

0:02:11.520 --> 0:02:14.639
<v Speaker 3>End, to your point here, the court decision had ordered

0:02:14.639 --> 0:02:17.120
<v Speaker 3>you to pay a one hundred and twenty five million

0:02:17.160 --> 0:02:21.000
<v Speaker 3>dollars civil penalty for exactly what you were talking about.

0:02:21.200 --> 0:02:23.840
<v Speaker 3>Is that one hundred and twenty five million paid, is

0:02:23.880 --> 0:02:24.440
<v Speaker 3>what you're saying.

0:02:24.480 --> 0:02:25.640
<v Speaker 2>That's still up participet.

0:02:25.880 --> 0:02:27.400
<v Speaker 1>Yeah, well it's not a dispute.

0:02:27.400 --> 0:02:31.200
<v Speaker 4>I mean, that's sitting in an escrow, and you know,

0:02:31.240 --> 0:02:34.240
<v Speaker 4>depending upon whether we decide to continue with our appeal,

0:02:34.680 --> 0:02:35.799
<v Speaker 4>we could walk away.

0:02:35.560 --> 0:02:37.200
<v Speaker 1>And the whole thing and be done, done done.

0:02:37.760 --> 0:02:39.600
<v Speaker 4>On the other hand, when you have a case where

0:02:39.600 --> 0:02:43.200
<v Speaker 4>there were no investor, no investor harm, no investors lost.

0:02:43.040 --> 0:02:45.160
<v Speaker 1>Any money, you're kind of like, wait, like why are

0:02:45.200 --> 0:02:45.720
<v Speaker 1>we here?

0:02:45.800 --> 0:02:48.160
<v Speaker 4>And it really goes back to Gary Gensler fighting a

0:02:48.200 --> 0:02:51.480
<v Speaker 4>fight that was about power grab, that was about overreach

0:02:51.600 --> 0:02:54.239
<v Speaker 4>of the bureaucracy to try to take a new industry.

0:02:54.880 --> 0:02:57.800
<v Speaker 4>That what we're seeing now happening in Washington is smart

0:02:57.919 --> 0:03:01.480
<v Speaker 4>legislation will come forward that happened with stable coins in

0:03:01.520 --> 0:03:04.359
<v Speaker 4>real time, and I think you'll have a market Structure

0:03:04.400 --> 0:03:06.960
<v Speaker 4>Bill is what it's described as to provide clarity and

0:03:07.080 --> 0:03:09.320
<v Speaker 4>rules for the SEC and CF we will look at.

0:03:09.240 --> 0:03:09.880
<v Speaker 2>The bigger picture.

0:03:10.080 --> 0:03:12.040
<v Speaker 3>We're going to have you for a little while this morning.

0:03:12.080 --> 0:03:15.760
<v Speaker 3>But do you think that part of this means fighting

0:03:15.760 --> 0:03:17.920
<v Speaker 3>it till the very end to make sure even that

0:03:18.000 --> 0:03:21.840
<v Speaker 3>part of uncertainty around being sold to certain investors classifies

0:03:21.880 --> 0:03:22.640
<v Speaker 3>as a security.

0:03:22.720 --> 0:03:25.639
<v Speaker 2>Is that what you are fighting for ultimately at this point?

0:03:25.840 --> 0:03:28.600
<v Speaker 4>Well, I mean, at this point, all we're fighting for

0:03:28.800 --> 0:03:31.280
<v Speaker 4>is do we want to fight to get one hundred

0:03:31.280 --> 0:03:32.399
<v Speaker 4>and twenty five million dollars back?

0:03:32.639 --> 0:03:34.360
<v Speaker 1>We look, I'll be honest.

0:03:34.480 --> 0:03:37.440
<v Speaker 4>Would I have walked away from that before they appealed?

0:03:37.480 --> 0:03:41.320
<v Speaker 4>Before President Trump put Paul Atkins and Scott Bessend and

0:03:41.400 --> 0:03:44.640
<v Speaker 4>David Sachs as critical key, very smart leaders in this

0:03:44.680 --> 0:03:48.040
<v Speaker 4>industry to bring this industry back on shore, I would

0:03:48.040 --> 0:03:48.680
<v Speaker 4>have walked away.

0:03:48.960 --> 0:03:51.240
<v Speaker 1>Now you look at that, like this case in.

0:03:51.120 --> 0:03:54.760
<v Speaker 4>This SEC never would have been brought. And so where

0:03:54.760 --> 0:03:59.160
<v Speaker 4>we find ourselves is great. There's a clear illegal victory

0:03:59.560 --> 0:04:01.640
<v Speaker 4>to say xarp's not a security that was good for

0:04:01.680 --> 0:04:03.840
<v Speaker 4>the industry, But there's pieces of it that we think

0:04:03.880 --> 0:04:05.720
<v Speaker 4>could be kind of cleaned up, and there's questions, do

0:04:05.760 --> 0:04:07.320
<v Speaker 4>we want to fight that fight or can we come

0:04:07.360 --> 0:04:09.720
<v Speaker 4>to agreement with the SEC to drop everything the whole

0:04:09.760 --> 0:04:10.200
<v Speaker 4>idea that.

0:04:10.160 --> 0:04:11.840
<v Speaker 2>This wouldn't have been brought under this SEC.

0:04:11.880 --> 0:04:14.520
<v Speaker 3>Have you had that specific discussion with Paul Adkins and

0:04:14.560 --> 0:04:15.640
<v Speaker 3>with David Sachs.

0:04:16.120 --> 0:04:18.160
<v Speaker 1>Well, Paul Adkins hasn't yet been confirmed.

0:04:18.800 --> 0:04:21.359
<v Speaker 4>You know, he's a very knowledgele guy about this industry

0:04:21.480 --> 0:04:22.400
<v Speaker 4>and has been for.

0:04:22.360 --> 0:04:25.040
<v Speaker 1>A long time. But I've had conversations.

0:04:25.080 --> 0:04:28.480
<v Speaker 4>I won't comment on specifics with certainly, you know, I

0:04:28.520 --> 0:04:31.039
<v Speaker 4>think David Sachs would agree that this is a case

0:04:31.080 --> 0:04:33.279
<v Speaker 4>that didn't make a lot of sense in the beginning. Again,

0:04:33.440 --> 0:04:35.800
<v Speaker 4>there was no investor harm. This was about Gary Gensler

0:04:35.880 --> 0:04:37.440
<v Speaker 4>waging new war against this industry.

0:04:37.520 --> 0:04:38.119
<v Speaker 2>You know, it's interesting.

0:04:38.200 --> 0:04:40.400
<v Speaker 3>I want to also point out that the affiliated token,

0:04:40.480 --> 0:04:43.840
<v Speaker 3>of course XRP has been up roughly fourteen percent now

0:04:43.839 --> 0:04:46.080
<v Speaker 3>about thirteen percent in the last twenty four hours.

0:04:46.320 --> 0:04:48.120
<v Speaker 2>You know, one thing a lot of people had looked at.

0:04:48.160 --> 0:04:50.640
<v Speaker 3>We're thinking a lot about how the administration is handling

0:04:50.920 --> 0:04:54.400
<v Speaker 3>crypto assets, particularly outside of bitcoin. Why do you think

0:04:54.600 --> 0:04:58.320
<v Speaker 3>XRP wasn't specifically named in the Executive order for the

0:04:58.360 --> 0:05:00.400
<v Speaker 3>Digital asset STOCKPIP.

0:05:00.920 --> 0:05:04.280
<v Speaker 4>Well, so XRP was named by the President in untruth

0:05:04.400 --> 0:05:07.840
<v Speaker 4>social he posted something saying that there should be other tokens,

0:05:08.200 --> 0:05:11.200
<v Speaker 4>that there's going to be a bitcoin strategic reserve and

0:05:11.200 --> 0:05:13.960
<v Speaker 4>then a crypto stockpile that would include things like excesse.

0:05:14.040 --> 0:05:16.560
<v Speaker 2>Later the executive order didn't include it. Why was that.

0:05:17.560 --> 0:05:20.760
<v Speaker 4>I don't know what specifically is in the executive order.

0:05:20.880 --> 0:05:24.080
<v Speaker 4>My understanding is there's going to be a bitcoin strategic reserve,

0:05:24.160 --> 0:05:28.080
<v Speaker 4>there'll be a crypto stockpile representing other cryptos, and I

0:05:28.080 --> 0:05:31.000
<v Speaker 4>would expect that will include XRP. Look, at the end

0:05:31.000 --> 0:05:33.880
<v Speaker 4>of the day, I think the stark contrast is in

0:05:33.920 --> 0:05:36.920
<v Speaker 4>the Biden administration, we couldn't get a meeting with people

0:05:36.960 --> 0:05:39.960
<v Speaker 4>at the White House. Now we're welcomed into the White House,

0:05:40.120 --> 0:05:42.680
<v Speaker 4>and that's just a massive change. I think we want

0:05:42.680 --> 0:05:44.920
<v Speaker 4>this industry to thrive in the United States. We don't

0:05:44.920 --> 0:05:47.360
<v Speaker 4>want to push it offshore where you have fewer regulations.

0:05:47.440 --> 0:05:49.159
<v Speaker 3>I think the reason they keep pushing you too is

0:05:49.200 --> 0:05:51.120
<v Speaker 3>because I think now it's widely accepted that this is

0:05:51.160 --> 0:05:55.000
<v Speaker 3>a pro crypto administration, but the details, that is what's

0:05:55.040 --> 0:05:58.640
<v Speaker 3>causing an overhand The uncertainty of the details, so to

0:05:58.680 --> 0:06:01.479
<v Speaker 3>the extent you have confidence right about XRP being in

0:06:01.520 --> 0:06:06.159
<v Speaker 3>that stockpile or otherwise getting more support for an ETF

0:06:06.600 --> 0:06:09.240
<v Speaker 3>for example, Where does that confidence come from and what

0:06:09.360 --> 0:06:10.760
<v Speaker 3>kind of timeline do you see.

0:06:10.640 --> 0:06:11.200
<v Speaker 2>It happening A on?

0:06:11.760 --> 0:06:13.680
<v Speaker 1>So I have immense confidence on the ETF.

0:06:13.720 --> 0:06:17.080
<v Speaker 4>I think there's eleven different filings pending with the SEC

0:06:17.200 --> 0:06:20.799
<v Speaker 4>to launch ETFs from everybody from bitwise to Franklin Templeton

0:06:20.920 --> 0:06:23.640
<v Speaker 4>and a whole bunch of people in between. I think

0:06:23.640 --> 0:06:26.080
<v Speaker 4>those will be live in the second half of this year.

0:06:26.960 --> 0:06:29.520
<v Speaker 4>We have seen even outside the United States, you have

0:06:29.640 --> 0:06:32.159
<v Speaker 4>live ETPs, and at a time when a lot of

0:06:32.279 --> 0:06:35.080
<v Speaker 4>outflows are exiting, some of the crypto ETFs are seeing

0:06:35.120 --> 0:06:38.400
<v Speaker 4>inflows into XRP. And I think that's because you had

0:06:38.400 --> 0:06:41.960
<v Speaker 4>this false negative pressure from the SEC. This is kind of,

0:06:42.360 --> 0:06:46.719
<v Speaker 4>you know, a exognous hand holding things down that's now

0:06:46.760 --> 0:06:47.520
<v Speaker 4>being released.

0:06:47.960 --> 0:06:48.920
<v Speaker 1>And that's great for the market.

0:06:49.000 --> 0:06:52.279
<v Speaker 4>It's great for builders within the XRP ecosystem globally.

0:06:53.480 --> 0:06:56.520
<v Speaker 2>One more on the stock pam, Yeah, how much XRP

0:06:56.640 --> 0:06:58.440
<v Speaker 2>would be in it? Where does it come from?

0:06:58.720 --> 0:07:01.080
<v Speaker 4>Well, my understanding what I read about the I mean,

0:07:01.120 --> 0:07:03.239
<v Speaker 4>I think there are some questions and that the devil.

0:07:03.279 --> 0:07:05.520
<v Speaker 4>Maybe in the details as Treasury implements some.

0:07:05.480 --> 0:07:07.520
<v Speaker 2>Of this absolutely details, but.

0:07:07.600 --> 0:07:11.080
<v Speaker 4>My understanding is that the stockpile wi be represented by

0:07:12.080 --> 0:07:15.480
<v Speaker 4>seized other cryptos other than Bitcoin, that then we'll be

0:07:15.520 --> 0:07:16.400
<v Speaker 4>in that stockpile.

0:07:16.440 --> 0:07:17.480
<v Speaker 1>So to the extent that.

0:07:17.440 --> 0:07:21.960
<v Speaker 4>Various law enforcement agencies have seized cryptos which would include XRP,

0:07:22.480 --> 0:07:25.080
<v Speaker 4>that those would go into the stockpile in addition to

0:07:25.120 --> 0:07:26.360
<v Speaker 4>the Bitcoin Strategic Reserve.

0:07:26.560 --> 0:07:30.720
<v Speaker 3>That's my understanding, Riple CEO Brad garling House. And of

0:07:30.760 --> 0:07:33.200
<v Speaker 3>course we have been talking here about a big moment

0:07:33.240 --> 0:07:35.760
<v Speaker 3>for you and for your company, of course, a rollback

0:07:35.880 --> 0:07:38.120
<v Speaker 3>really of the tensions that had been brewing.

0:07:37.800 --> 0:07:40.760
<v Speaker 2>With the SEC. And let's talk about the next phase.

0:07:41.080 --> 0:07:43.680
<v Speaker 3>One thing I'm really wondering about now that there's more

0:07:43.680 --> 0:07:48.640
<v Speaker 3>clarity for you, is that is an IPO, frankly in

0:07:48.960 --> 0:07:52.800
<v Speaker 3>your future. Now we talk so much about the potential

0:07:52.880 --> 0:07:56.080
<v Speaker 3>for the XRP token to be wrapped in an ETF

0:07:56.120 --> 0:07:57.400
<v Speaker 3>that is a method of listing.

0:07:57.880 --> 0:08:02.240
<v Speaker 2>So is listing possible now for you for Ripple, well.

0:08:02.120 --> 0:08:03.440
<v Speaker 1>Certainly something that is possible.

0:08:04.200 --> 0:08:06.800
<v Speaker 4>The United States SEC under Gensler was so hostile to

0:08:06.800 --> 0:08:09.320
<v Speaker 4>this industry, I mean, ironically they approved the s one

0:08:09.400 --> 0:08:11.600
<v Speaker 4>from coinbase and then sued them for doing the things

0:08:11.640 --> 0:08:12.440
<v Speaker 4>they said they were doing.

0:08:12.520 --> 0:08:15.880
<v Speaker 1>So this sec fortunately is going.

0:08:15.760 --> 0:08:18.200
<v Speaker 4>To be I think very constructive and positive for this industry.

0:08:18.360 --> 0:08:19.440
<v Speaker 1>So I think that's available.

0:08:19.480 --> 0:08:21.120
<v Speaker 4>I think the companies at a stage where we could

0:08:21.120 --> 0:08:24.080
<v Speaker 4>consider that. That being said, it isn't a huge priority,

0:08:24.120 --> 0:08:26.480
<v Speaker 4>you know, I think most companies are going public raising

0:08:26.560 --> 0:08:28.320
<v Speaker 4>capital is something that is high.

0:08:28.120 --> 0:08:29.200
<v Speaker 1>On their radar.

0:08:29.640 --> 0:08:31.800
<v Speaker 4>You know, we have been in a very fortunate position

0:08:31.920 --> 0:08:34.760
<v Speaker 4>to be able to grow the business organically. We're also

0:08:35.240 --> 0:08:38.840
<v Speaker 4>frankly more proactive and looking at acquisitions. That this is

0:08:38.840 --> 0:08:40.840
<v Speaker 4>an industry that finally is going to be able to

0:08:40.840 --> 0:08:43.319
<v Speaker 4>thrive in the United States, the largest economy in the world.

0:08:43.600 --> 0:08:46.880
<v Speaker 4>And I think the industry is still underestimating the shift

0:08:46.960 --> 0:08:49.839
<v Speaker 4>from the headwinds to the tailwinds. That's going to make

0:08:49.880 --> 0:08:52.120
<v Speaker 4>a bigger difference that people think. And finally, the US

0:08:52.200 --> 0:08:53.360
<v Speaker 4>market is really unlocked.

0:08:53.400 --> 0:08:55.440
<v Speaker 3>So it sounds like what you're saying, acquisitions are almost

0:08:55.480 --> 0:08:57.840
<v Speaker 3>more of a priority now than an IPO for you.

0:08:58.160 --> 0:08:59.880
<v Speaker 3>So then what would you be looking for to buy

0:09:00.040 --> 0:09:01.640
<v Speaker 3>and how big are you willing to go?

0:09:02.520 --> 0:09:05.400
<v Speaker 4>Well, I'm not going to name names, but look Ripple

0:09:05.440 --> 0:09:08.400
<v Speaker 4>at its core is a blockchain infrastructure company. We sell

0:09:08.400 --> 0:09:12.400
<v Speaker 4>our technologies to business, primarily financial institutions, and we'll look

0:09:12.440 --> 0:09:16.280
<v Speaker 4>at other things that are blockchain infrastructure companies. I think

0:09:16.320 --> 0:09:18.679
<v Speaker 4>there will be consolidation this year. There's a lot of

0:09:19.400 --> 0:09:22.840
<v Speaker 4>excitement about some of the changes, and you know we

0:09:22.880 --> 0:09:24.160
<v Speaker 4>will lean into that for sure.

0:09:24.679 --> 0:09:27.680
<v Speaker 3>So when you think about what's possible in terms of

0:09:27.679 --> 0:09:30.760
<v Speaker 3>financial institutions, there's been a lot of conversation about loosening

0:09:30.760 --> 0:09:33.080
<v Speaker 3>of regulations and red tape when it comes to the

0:09:33.080 --> 0:09:37.200
<v Speaker 3>financial industry and its interactions with the crypto community. What

0:09:37.320 --> 0:09:40.160
<v Speaker 3>are you actually seeing have and our bank's really warming

0:09:40.240 --> 0:09:42.000
<v Speaker 3>up in a way that's significant right now?

0:09:42.440 --> 0:09:44.080
<v Speaker 1>I mean I think unequivocally yes.

0:09:44.600 --> 0:09:46.400
<v Speaker 4>I mean, just in the last few weeks, I have

0:09:46.520 --> 0:09:49.720
<v Speaker 4>seen US financial institutions go from being like, look, we're

0:09:49.720 --> 0:09:51.880
<v Speaker 4>just not going to touch it because we don't want

0:09:51.880 --> 0:09:55.200
<v Speaker 4>the extra scrutiny of the regulators, which again may or

0:09:55.200 --> 0:09:57.640
<v Speaker 4>may not have even been legal, given these are legal businesses.

0:09:58.000 --> 0:10:00.760
<v Speaker 4>But you have large banks who used to say negative

0:10:00.800 --> 0:10:03.600
<v Speaker 4>things now saying positive things. I think that the two

0:10:03.720 --> 0:10:06.040
<v Speaker 4>areas you'll see the most activity in the short term.

0:10:06.720 --> 0:10:09.240
<v Speaker 4>One is around custody. These are banks that want to

0:10:09.240 --> 0:10:12.160
<v Speaker 4>be able to custody, particularly when you see real world

0:10:12.160 --> 0:10:13.400
<v Speaker 4>assets being tokenized.

0:10:13.679 --> 0:10:16.000
<v Speaker 1>You need to be able to safely.

0:10:15.640 --> 0:10:18.600
<v Speaker 4>Manage and custody that for customers and potentially for the bank.

0:10:18.880 --> 0:10:20.320
<v Speaker 1>And the second is around payments.

0:10:20.559 --> 0:10:23.600
<v Speaker 4>I mean, the global payments infrastructure still remains very dated.

0:10:24.720 --> 0:10:25.520
<v Speaker 1>Wires are slow.

0:10:25.559 --> 0:10:28.240
<v Speaker 4>I just had a wire that was sending over Euro's

0:10:28.280 --> 0:10:29.560
<v Speaker 4>disappear for five days.

0:10:30.360 --> 0:10:32.760
<v Speaker 1>You know, that's surprising a world of the Internet.

0:10:33.080 --> 0:10:36.679
<v Speaker 3>So one part of that payment's infrastructure that I'm watching

0:10:36.720 --> 0:10:39.640
<v Speaker 3>really closely is, of course stable coins. There is starting

0:10:39.640 --> 0:10:41.760
<v Speaker 3>to be more clarity in Washington, and you're seeing people

0:10:41.840 --> 0:10:43.920
<v Speaker 3>starting to use stable coins in really interesting ways. I

0:10:43.920 --> 0:10:47.400
<v Speaker 3>think about Robinhood, for example, using stable coin in terms

0:10:47.400 --> 0:10:49.920
<v Speaker 3>of facilitating twenty four hour trading.

0:10:50.960 --> 0:10:51.559
<v Speaker 2>What's next?

0:10:51.640 --> 0:10:54.280
<v Speaker 3>I mean, if you think about the next forefront of

0:10:54.600 --> 0:10:58.679
<v Speaker 3>stable coins, now that the US is getting toward clarity,

0:10:59.280 --> 0:10:59.960
<v Speaker 3>what's possible.

0:11:00.640 --> 0:11:03.640
<v Speaker 4>Well, again, I think we're underestimated how big that might get.

0:11:03.679 --> 0:11:05.720
<v Speaker 4>You know, today that market's about two hundred and thirty

0:11:05.760 --> 0:11:08.400
<v Speaker 4>billion dollars, so I think some smart people think that

0:11:08.440 --> 0:11:09.160
<v Speaker 4>may go up ten.

0:11:09.240 --> 0:11:11.679
<v Speaker 1>X in the next five years. I think that's probably right.

0:11:11.720 --> 0:11:14.640
<v Speaker 4>I mean, the two leading players and tether as well

0:11:14.679 --> 0:11:17.920
<v Speaker 4>as USDC are both I think poised to do well

0:11:17.920 --> 0:11:21.240
<v Speaker 4>in that market. Ripple launched our own stable coin at

0:11:21.240 --> 0:11:23.640
<v Speaker 4>the end of last year. That's already ahead of our

0:11:23.640 --> 0:11:26.520
<v Speaker 4>own internal forecasts in terms of where we are at

0:11:26.520 --> 0:11:28.160
<v Speaker 4>this point in the year. It's still we're small, but

0:11:28.440 --> 0:11:29.800
<v Speaker 4>the goal is by the end of the year for

0:11:29.960 --> 0:11:32.160
<v Speaker 4>r l USD Ripple stable coin to be one of

0:11:32.200 --> 0:11:33.520
<v Speaker 4>the top five in the market by the end of

0:11:33.559 --> 0:11:33.800
<v Speaker 4>the year.

0:11:33.800 --> 0:11:35.720
<v Speaker 1>And I think the whole market's going to grow dramatically

0:11:35.760 --> 0:11:36.200
<v Speaker 1>of this year.

0:11:36.280 --> 0:11:38.760
<v Speaker 2>So what does it take you to get there? Who

0:11:38.760 --> 0:11:39.840
<v Speaker 2>are you pairing up with?

0:11:40.000 --> 0:11:43.160
<v Speaker 3>Are you creating some financial partnerships in order to make

0:11:43.440 --> 0:11:46.800
<v Speaker 3>our l usc more of a household name.

0:11:46.880 --> 0:11:47.559
<v Speaker 1>Yeah, for sure.

0:11:47.720 --> 0:11:50.040
<v Speaker 4>I mean even today we had more listings go live

0:11:50.080 --> 0:11:52.679
<v Speaker 4>for our l USD on some global crypto exchanges.

0:11:53.360 --> 0:11:55.320
<v Speaker 1>You know, anytime you do something new, it takes.

0:11:55.120 --> 0:11:57.280
<v Speaker 4>A minute for that kind of if the pun of

0:11:57.360 --> 0:12:00.320
<v Speaker 4>the Ripple effect of seeing how that plays out, and

0:12:00.360 --> 0:12:01.880
<v Speaker 4>so we're seeing that happen in real time.

0:12:01.960 --> 0:12:03.320
<v Speaker 1>So I'm really pleased.

0:12:03.320 --> 0:12:04.880
<v Speaker 4>Again, as I said, we're ahead of our Q one

0:12:04.880 --> 0:12:07.480
<v Speaker 4>forecasts of where we expect it to be, So we

0:12:07.520 --> 0:12:09.439
<v Speaker 4>feel really good about that progress.

0:12:09.080 --> 0:12:11.120
<v Speaker 2>Given through what you have gone through with the SEC.

0:12:11.240 --> 0:12:14.960
<v Speaker 3>I think one major question is how tokens list in

0:12:15.000 --> 0:12:16.440
<v Speaker 3>the future, What do they mean?

0:12:16.480 --> 0:12:17.640
<v Speaker 2>How are they classified?

0:12:18.000 --> 0:12:20.720
<v Speaker 3>Now that you're talking about many other say even private

0:12:20.720 --> 0:12:24.200
<v Speaker 3>equity companies looking to tokenize their funds. Venture capitalist Kathy

0:12:24.200 --> 0:12:26.080
<v Speaker 3>Wood told us yesterday she's considering that.

0:12:26.000 --> 0:12:29.000
<v Speaker 2>For her own fund. What does this mean? What are

0:12:29.040 --> 0:12:30.120
<v Speaker 2>the rules of the road.

0:12:30.440 --> 0:12:33.600
<v Speaker 3>Are people going to list and put the cart in

0:12:33.600 --> 0:12:35.520
<v Speaker 3>front of the horse as they do?

0:12:35.600 --> 0:12:35.680
<v Speaker 2>So?

0:12:36.000 --> 0:12:39.080
<v Speaker 4>Yeah, well, look, I think tokenizing, like what Kathy Wood's

0:12:39.120 --> 0:12:43.520
<v Speaker 4>talking about, democratizing access to do different investment vehicles in

0:12:43.559 --> 0:12:47.800
<v Speaker 4>different investment types is very compelling. Even you imagine shark

0:12:47.840 --> 0:12:50.800
<v Speaker 4>tank enabling the participation by different sharks, Like, there's some

0:12:50.840 --> 0:12:54.520
<v Speaker 4>really interesting stuff you could do. Right now, Congress, it seems,

0:12:54.600 --> 0:12:57.360
<v Speaker 4>is more focused on getting stable coin legislation passed. That

0:12:57.400 --> 0:12:59.360
<v Speaker 4>went for markup last week, and I think you'll see

0:12:59.360 --> 0:13:00.439
<v Speaker 4>that potentially in front.

0:13:00.240 --> 0:13:01.559
<v Speaker 1>Of the President in weeks.

0:13:02.600 --> 0:13:05.480
<v Speaker 4>The other piece of legislation I think we'll move quickly

0:13:05.559 --> 0:13:08.560
<v Speaker 4>after that is kind of the market Structure bill last summer.

0:13:08.760 --> 0:13:11.719
<v Speaker 4>If something called Fit twenty one past the House did

0:13:11.760 --> 0:13:14.080
<v Speaker 4>not get through the Senate, I think that a market

0:13:14.120 --> 0:13:16.760
<v Speaker 4>structure bill like FIT twenty one will come before Congress,

0:13:16.880 --> 0:13:18.320
<v Speaker 4>hopefully before the summer recess.

0:13:18.320 --> 0:13:19.079
<v Speaker 1>We'll see that pass.

0:13:19.120 --> 0:13:21.200
<v Speaker 3>Also, you know, when you think about how many exchanges

0:13:21.240 --> 0:13:23.840
<v Speaker 3>are now looking to loosen their listing standards, already on

0:13:23.880 --> 0:13:27.240
<v Speaker 3>the heels of lighter oversight and the cart before the

0:13:27.240 --> 0:13:28.160
<v Speaker 3>horse question.

0:13:28.000 --> 0:13:29.680
<v Speaker 2>Do you think that people are getting a little ahead

0:13:29.679 --> 0:13:31.720
<v Speaker 2>of themselves and listing things that shouldn't be listed.

0:13:32.240 --> 0:13:35.600
<v Speaker 4>Well, I don't think about it as lighter regulation, because, frankly,

0:13:35.640 --> 0:13:38.880
<v Speaker 4>I think the industry wants to be regulated. And what

0:13:38.920 --> 0:13:41.480
<v Speaker 4>we've been saying for years as an industry is we

0:13:41.559 --> 0:13:42.760
<v Speaker 4>just want clear regulation.

0:13:43.160 --> 0:13:45.120
<v Speaker 1>We don't want lawsuits.

0:13:44.520 --> 0:13:47.000
<v Speaker 4>Just claiming one thing and the next week contradicting themselves,

0:13:47.040 --> 0:13:50.440
<v Speaker 4>which is exactly what Gensler's SEC was doing. So I

0:13:50.440 --> 0:13:52.120
<v Speaker 4>think just the fact that we have an SEC who's

0:13:52.120 --> 0:13:55.120
<v Speaker 4>trying to work constructively instead of trying to sue more companies.

0:13:55.160 --> 0:13:58.400
<v Speaker 4>Let's actually work and let's codify and get legislation to

0:13:58.440 --> 0:13:59.400
<v Speaker 4>provide that clarity.

0:14:00.000 --> 0:14:03.280
<v Speaker 3>Again, if you don't have that clarity, what you saw

0:14:03.480 --> 0:14:07.360
<v Speaker 3>years ago was an ICO boom where tons of things

0:14:07.400 --> 0:14:10.400
<v Speaker 3>that were raising money never worked out for the people

0:14:10.400 --> 0:14:12.360
<v Speaker 3>that were buying the tokens or points.

0:14:12.559 --> 0:14:15.280
<v Speaker 4>Look, I agreed, I said then that I think of it.

0:14:15.440 --> 0:14:17.560
<v Speaker 4>Some of these icos were a lot more like IPOs.

0:14:17.559 --> 0:14:20.440
<v Speaker 4>They were securities. The problem is the sec then kind

0:14:20.440 --> 0:14:23.480
<v Speaker 4>of used that to just blanket and say, I mean, well,

0:14:23.480 --> 0:14:25.920
<v Speaker 4>Gensler said, before he was SEC chair, he didn't think

0:14:25.960 --> 0:14:28.200
<v Speaker 4>there are securities, and then after he became SEC chair,

0:14:28.280 --> 0:14:30.840
<v Speaker 4>as kind of his power grab, Gensler wanted everything under

0:14:30.880 --> 0:14:31.680
<v Speaker 4>his jurisdiction.

0:14:32.280 --> 0:14:34.920
<v Speaker 1>So I think I was that ICO boom.

0:14:34.640 --> 0:14:37.160
<v Speaker 4>Went away, and there's lots of ways this government can

0:14:37.240 --> 0:14:40.120
<v Speaker 4>regulate and manage fraud and manage criminal.

0:14:39.760 --> 0:14:42.160
<v Speaker 1>Activity, and that did happen. People did go to jail.

0:14:42.320 --> 0:14:45.240
<v Speaker 3>I have one more question for you about ripple on XRP,

0:14:45.440 --> 0:14:48.960
<v Speaker 3>in particular on the supply and how it's managed and

0:14:49.000 --> 0:14:52.320
<v Speaker 3>the unlocks. Is there anything you would do to change

0:14:52.360 --> 0:14:53.920
<v Speaker 3>the amount of supply brought to market?

0:14:53.960 --> 0:14:55.920
<v Speaker 2>Can you do that? How does that exactly work?

0:14:56.000 --> 0:14:59.160
<v Speaker 3>Because there is a level of dilution for XRP when

0:14:59.160 --> 0:15:01.360
<v Speaker 3>more supply is in on a regular basis.

0:15:01.600 --> 0:15:02.880
<v Speaker 4>So this is one of the things I'm glad you

0:15:02.920 --> 0:15:07.120
<v Speaker 4>ASKEDECT because there's frankly misinformation. Sometimes frank disinformation people spreading

0:15:07.160 --> 0:15:10.640
<v Speaker 4>falsehoods out there. The amount of XRP that was created

0:15:10.760 --> 0:15:14.600
<v Speaker 4>in twenty twelve when it was first started that blockchain

0:15:14.640 --> 0:15:16.400
<v Speaker 4>has first started was one hundred billion units.

0:15:16.520 --> 0:15:19.920
<v Speaker 1>That can't be increased. It's slightly deflationary. Now there's about

0:15:19.960 --> 0:15:21.560
<v Speaker 1>ninety nine point nine billion units.

0:15:21.960 --> 0:15:24.720
<v Speaker 4>Ripple owns about forty two percent of that supply.

0:15:25.360 --> 0:15:27.480
<v Speaker 1>We have had in for I guess eight years.

0:15:27.520 --> 0:15:30.040
<v Speaker 4>We published something called the XRP Markets Report, where we

0:15:30.080 --> 0:15:33.760
<v Speaker 4>share how much we are introducing into the market because

0:15:33.800 --> 0:15:36.360
<v Speaker 4>we want that to be predictable, and that has been

0:15:36.440 --> 0:15:38.440
<v Speaker 4>the case for many years now, and so we will

0:15:38.480 --> 0:15:41.400
<v Speaker 4>continue to make sure that's very predictable. You know, at

0:15:41.440 --> 0:15:44.760
<v Speaker 4>some point maybe we won't be selling as much. We'll

0:15:44.800 --> 0:15:47.920
<v Speaker 4>see how that plays out in the future. But right now, frankly,

0:15:47.960 --> 0:15:50.040
<v Speaker 4>we get criticized for owning too much, and then we're

0:15:50.040 --> 0:15:52.480
<v Speaker 4>criticized for selling some. But we want to do that

0:15:52.520 --> 0:15:54.720
<v Speaker 4>in a constructive way, which is what we've done for years.

0:15:54.800 --> 0:15:57.200
<v Speaker 2>We'll be keeping a close eye on those moves. Brad,

0:15:57.240 --> 0:15:58.160
<v Speaker 2>thank you for joining us here.

0:15:58.160 --> 0:16:00.120
<v Speaker 3>On said, I know that it's a big announcement and

0:16:00.240 --> 0:16:02.440
<v Speaker 3>for Ripple, and of course a lot of still changes

0:16:02.520 --> 0:16:06.440
<v Speaker 3>still ahead. That is of course, Ripple CEO Brad Garling House,