Ripple CEO expects crypto industry to reboot after US election

What’s new? Ripple fintech company CEO Brad Garlinghouse has said that the crypto industry is in for a reboot, and it will happen regardless of the outcome of the US presidential election. Speaking at DC Fintech Week, the entrepreneur noted that the states are currently lagging behind other countries when it comes to regulating the industry. He criticized the administration of current President Joe Biden for its hostile approach to crypto firms.

Recording of the speech

What else is known? Garlinghouse said that Securities and Exchange Commission (SEC) Chairman Gary Gensler, a Biden appointee, is terrorizing the crypto industry and that Democratic Senator Elizabeth Warren, known for her “anti-crypto army” initiative, is spreading misinformation about it.

As for the two major candidates in the November election — 45th Republican President Donald Trump and incumbent Vice President, Democrat Kamala Harris — Garlinghouse noted that both have a positive attitude toward the crypto industry.

While Trump has released his own NFT collections, started accepting cryptocurrency donations, and called for the creation of a national bitcoin reserve, turning the United States into a global crypto hub and supporting miners, Harris has shown a more reserved stance. Nevertheless, she pledged, if elected, to promote increased investment in the crypto sector and support the creation of a regulatory framework for the industry.

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Garlinghouse added that Ripple actively donates to political causes. In this election cycle, the company has donated nearly $50 million to the FairShake committee, which supports candidates from both parties. On October 21, Ripple co-founder Chris Larsen said he donated $10 million to Harris’ campaign headquarters, in addition to the $1 million he sent in August.

In a new interview with Bloomberg, Garlinghouse also expressed confidence in the imminent approval of spot exchange-traded funds (ETFs) based on Ripple’s $29,9 billion capitalization token XRP.

He noted that since the approval of spot BTC ETFs in January this year, cumulative inflows into such products totaled $21 billion, which very clearly shows the demand from institutions and retail investors. Overall, crypto funds, in his view, are part of the trend towards institutional adoption of digital assets.

At the same time, the entrepreneur admitted that Ripple should have approached the US regulators earlier before the company was dragged into a lawsuit initiated by the SEC.

In 2020, the regulator called XRP an unregistered security in its lawsuit. Last year, the court said retail sales were not a violation, but in 2024 the company was fined $125 million for institutional sales violations. Last week, the SEC filed an appeal of the retail sales ruling.

Ambiguity over the status of the asset could hinder the launch of spot XRP funds, given that the SEC is responsible for approving them.

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In the current climate of uncertainty, Garlinghouse advised companies to move operations outside the US. He also noted the ongoing problem of debunking of the crypto industry, which is caused by SEC pressure on institutions. This is an issue that Garlinghouse has encountered personally.

The entrepreneur said that Citi Bank, of which he had been a customer for 25 years, closed his accounts for this very reason, giving him five days to withdraw his funds.

“They were actually super honest. They’re like, ‘Look, you are a notable person in crypto, and having notable people in crypto, and banking the crypto industry means more scrutiny from federal regulators.’”