WEBVTT - Ripple CEO Brad Garlinghouse says an XRP ETF Is ‘Inevitable’

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<v Speaker 1>No matter how you slice it, crypto certainly has a

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<v Speaker 1>bigger voice in the election cycle than ever before.

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<v Speaker 2>It's a great way to get into our next guest

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<v Speaker 2>Ripple CEO Brad Garling House, of course, one of the

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<v Speaker 2>companies we named when it came to the involvement in

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<v Speaker 2>this election cycle. And Brad, you know, it's interesting because

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<v Speaker 2>your co founder, Chris Larsen, has given a lot of

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<v Speaker 2>money to the Harris campaign. You had just told us

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<v Speaker 2>a little bit ago that you are fiercely independent, and

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<v Speaker 2>so when you think about the differences in the candidates

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<v Speaker 2>and how they might approach crypto, what do you really know,

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<v Speaker 2>particularly because the Harris campaign has been far more vague.

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<v Speaker 3>Well, I think there's one thing I feel very confident about,

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<v Speaker 3>and that is the Biden Administration's approach to regulation of

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<v Speaker 3>the crypto industry. That is coming to an end for sure,

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<v Speaker 3>and I think no matter where this plays out at

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<v Speaker 3>the presidential level, we will have a more constructive engagement

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<v Speaker 3>with this industry. It's a critical industry, it's an innovative technology,

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<v Speaker 3>and I think the United States should be at the

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<v Speaker 3>forefront and leading, as we did with the Internet of Information.

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<v Speaker 3>I think we'll get there. As I said yesterday at

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<v Speaker 3>the Philadelphia Federal Reserve, I think Gary Gensler's reign of

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<v Speaker 3>terror on the crypto industry is going to come to

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<v Speaker 3>an end very soon. Brad.

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<v Speaker 1>In your view, does it matter if Kamala Harris is

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<v Speaker 1>president come January twentieth or Donald Trump is president come

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<v Speaker 1>January twentieth, what's better for you?

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<v Speaker 3>What's better for Ripple? Well, I've taken a very neutral

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<v Speaker 3>point of view for the crypto industry. I think it's

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<v Speaker 3>clear that the Republicans at a macro level have been

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<v Speaker 3>more proactive in saying this is an industry that needs

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<v Speaker 3>clear regulation. You have seen a Republican led bill in

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<v Speaker 3>the House pass with seventy one or seventy two Democrats

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<v Speaker 3>crossing the alge to support that in a very bipartisan way.

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<v Speaker 3>So I think we have seen a more Republican centric

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<v Speaker 3>But I also think you've seen indications that the Harris

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<v Speaker 3>campaign wants to reset some of the very flawed approaches

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<v Speaker 3>that the Biden administration has had with the crypto industry

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<v Speaker 3>and other parts of technology. So what I'm optimistic about

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<v Speaker 3>is we're going to sea change, We're going to cea reset,

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<v Speaker 3>and I think we need that at the federal level

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<v Speaker 3>the United States. There's no question the United States is

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<v Speaker 3>behind other leading countries like the UK, like Switzerland, like Singapore,

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<v Speaker 3>like Japan that are way ahead and providing constructive and

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<v Speaker 3>clear regulation and rules of the road for this industry.

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<v Speaker 2>Bred. I also want to kind of switch gears here

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<v Speaker 2>and talk about another milestone, let's call it for XARP,

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<v Speaker 2>which is this idea that you have asset managers now

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<v Speaker 2>filing for ETFs tied to it. Started by bit wise,

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<v Speaker 2>what is the prospect of having that spot ETF tied

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<v Speaker 2>to XRP anytime soon and what do you think it'll

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<v Speaker 2>mean for the price of XRP.

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<v Speaker 3>Well, I think we clearly are seeing ETFs have been popular.

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<v Speaker 3>You know, the United States SEC was dragged kicking and

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<v Speaker 3>screaming to approve the Bitcoin ETF in January. I think

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<v Speaker 3>you've seen about seventeen billion dollars flow into that ETF.

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<v Speaker 3>I think it's the fastest growing ETF in history. It's

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<v Speaker 3>very clearly demonstrating those demand from institutions, demand from retail

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<v Speaker 3>to access this asset class. So the XRP interest has grown.

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<v Speaker 3>You've seen two or three ETF filings happen around XRP,

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<v Speaker 3>and to me, it's just inevitable. You're going to see

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<v Speaker 3>not just Bitcoin and Eth, You're going to see an

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<v Speaker 3>XRP ETF. You're starting to see there's a filing around

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<v Speaker 3>a basket ETF that has I think five or six

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<v Speaker 3>cryptos in it, which I think also makes a lot

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<v Speaker 3>of sense. But it also is just part of the

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<v Speaker 3>trend of more and more institutionalized participation in the crypto industry.

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<v Speaker 3>So I think we're going to continue to see that,

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<v Speaker 3>and I do think it creates upward pressure on the

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<v Speaker 3>prices for many different cryptos, including XRP.

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<v Speaker 1>It flows into the Bitcoin ETFs have been pretty remarkable.

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<v Speaker 1>Not so remarkable have been flows into the ETFs. What

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<v Speaker 1>indication do you have, Brad, that there actually is demand

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<v Speaker 1>for an XRP ETF.

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<v Speaker 3>Well, I would disagree that there's not. That. The ETH

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<v Speaker 3>ETF I think has done exceptionally well. It hasn't done

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<v Speaker 3>as well as Bitcoin, but if you look at the

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<v Speaker 3>kind of market dominance of Bitcoin compared to Eth, the

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<v Speaker 3>ratio is about the same in terms of the ETF participation. Obviously,

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<v Speaker 3>the Eth ETF is newer, so I actually think the

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<v Speaker 3>Eth ETF has done very well. I think we clearly

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<v Speaker 3>see a very interested and active community around the XRP ecosystem,

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<v Speaker 3>both here in the United States and beyond, and that

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<v Speaker 3>has grown, and so I think that the a XRP

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<v Speaker 3>ETF will will do quite well.

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<v Speaker 2>You know, I also want to talk about another overhang

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<v Speaker 2>on the XRP price, and that is the ongoing battle

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<v Speaker 2>you have with the SEC. And you have that recent

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<v Speaker 2>move by the SEC to appeal a court judgment that

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<v Speaker 2>had been more favorable for Ripple in this In this fight,

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<v Speaker 2>when does it I'm spread.

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<v Speaker 3>So, look, it's super frustrating. Obviously XRP. It happens to

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<v Speaker 3>be the XRP was rallying and then the announcements around

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<v Speaker 3>the ETFs and the SEC decides to from my point

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<v Speaker 3>of view, manipulate the market, and the price of XRP

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<v Speaker 3>goes down twenty percent. Now, the good news is they're

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<v Speaker 3>not appealing whether not XRP is actually a security, and

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<v Speaker 3>I think this is actually misunderstood in the market. They're

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<v Speaker 3>appealing kind of a nuanced piece around programmatic sales of XRP.

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<v Speaker 3>So the law of the land is clear, XRP is

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<v Speaker 3>not a security. It's a sad reality. There's only two

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<v Speaker 3>digital assets where there is regulatory clarity, that's bitcoin and XRP.

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<v Speaker 3>But do we really want to have to go and

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<v Speaker 3>litigate every single token to determine what whether or not

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<v Speaker 3>they are securities or not. We need clear rules of

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<v Speaker 3>the road. And the sec has just not been a

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<v Speaker 3>good faith actor, and luckily the courts and federal judges

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<v Speaker 3>have called them out on that and used words like

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<v Speaker 3>they're being arbitrary and capricious. That's a quote, saying things

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<v Speaker 3>like they're not acting with a good faith, a llegion

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<v Speaker 3>and still law another quote. So this is not an

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<v Speaker 3>agency that has acted in good faith to find a

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<v Speaker 3>way to regulate this industry in a way that works

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<v Speaker 3>for the industry and works to protect consumers.

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<v Speaker 1>Hey, Brat, we mentioned earlier that Ripple one of the

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<v Speaker 1>biggest donors out there when it comes to campaign contributions,

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<v Speaker 1>whether those are going to a political action committee or

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<v Speaker 1>two candidates, what are you looking for in return from

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<v Speaker 1>these politicians?

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<v Speaker 3>We are looking to get progressive, forward thinking, pro innovation,

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<v Speaker 3>and pro crypto people elected. And the fact that crypto

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<v Speaker 3>in any way has become partisan is it's kind of

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<v Speaker 3>madness to me. It's almost like saying one politician is

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<v Speaker 3>against email and one is pro email, Like it doesn't

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<v Speaker 3>really make sense. What I think regulators and elected politicians

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<v Speaker 3>should focus on is how are these technologies used, not

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<v Speaker 3>taking the issue with one technology or another. So we

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<v Speaker 3>have gotten active because we've had such a hostile environment

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<v Speaker 3>here in the United States, and again I'll contrast that

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<v Speaker 3>with we've had a massively growing business outside the United

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<v Speaker 3>States in markets where regulars and elected officials have engaged

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<v Speaker 3>and created clear rules of the road. So we've been

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<v Speaker 3>actually very happy and excited about how that has played out.

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<v Speaker 3>And I think we're seeing pro innovation, pro technology, pro

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<v Speaker 3>consumer protection candidates get elected over candidates who really have

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<v Speaker 3>had backwards views of in frankly, spreading misinformation and lies

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<v Speaker 3>about how crypto is being used.

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<v Speaker 2>Yad, I want to switch gears for a second here,

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<v Speaker 2>got to get your opinion on what we just saw

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<v Speaker 2>just this week, eye popping deal really for our Stripe

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<v Speaker 2>to acquire a stable cooin platform, a more than billion

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<v Speaker 2>dollar deal in this industry, when you look at a

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<v Speaker 2>deal like that, do you say, Okay, maybe we sell

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<v Speaker 2>Ripple or at least partner with another large financial technology

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<v Speaker 2>firm to expand in the world of stable coins.

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<v Speaker 3>Look at that as a very positive sign that this

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<v Speaker 3>industry is just coming more and more mainstream, more and

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<v Speaker 3>more integrated, and more and more demand and different payment flows.

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<v Speaker 3>So I've view it's a very positive thing for the industry.

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<v Speaker 3>As you probably know, you know, Ripple is about to

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<v Speaker 3>release our own stable coin called r l USD. I

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<v Speaker 3>think the stable coin market's going to continue to grow,

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<v Speaker 3>and I think Stripe is clearly indicating they think the same.

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<v Speaker 1>Ripple CEO Brad garling House joining us from DC Fintech

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<v Speaker 1>Week down in Washington and d C. Thanks so much

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<v Speaker 1>for taking the time to appreciate it.