Ripple CEO Brad Garlinghouse Discusses RLUSD Launch, XRP ETFs, and SEC Appeal
Ripple CEO Brad Garlinghouse recently shared insights on several key developments, including the upcoming RLUSD launch, the status of XRP ETFs, and the U.S. SEC’s appeal against Ripple. He also touched on regulatory issues and the potential impact of the upcoming U.S. elections on the crypto space.
RLUSD Stablecoin Launch
In a recent interview on the Thinking Crypto podcast, Garlinghouse explained that the decision to launch RLUSD was driven by Ripple’s extensive use of USDT and USDC in their payments system. Given the volume of stablecoin transactions, Ripple saw an opportunity to enter the stablecoin market, not to compete but to expand it. He stated that the RLUSD launch would enhance liquidity on the XRP ledger (XRPL), benefiting the broader XRP ecosystem.
Garlinghouse noted that RLUSD would function similarly to USDT and USDC on Ripple’s On-Demand Liquidity (ODL) rails, maintaining their focus on improving the XRP ecosystem, particularly within decentralized finance (DeFi). Ripple announced partnerships with Uphold, Bitso, and Bitstamp for the RLUSD, with the launch expected soon, though no exact date has been set.
XRP ETF Applications
Garlinghouse commented on the timing of XRP ETF applications, expressing surprise but noting it was inevitable after the approval of Spot Bitcoin ETFs. He views the applications by Bitwise and Canary Island as positive for the XRP ecosystem, with Ripple offering its support.
When asked if the U.S. SEC would block these applications amid their ongoing appeal, Garlinghouse suggested that the SEC was already working to prevent the approval of these funds. He pointed out that the SEC’s appeal coincided with the beginning of the XRP ETF application process, hinting at a deliberate strategy to hinder these developments.
The CEO also referenced Bitnomial’s legal challenge against the SEC, where the Commission labeled XRP futures as “Security Futures,” despite Judge Analisa Torres ruling that XRP is not a security. Garlinghouse believes this is part of a broader strategy by the SEC to curb Ripple’s growth.
Interestingly, he remarked that Gary Gensler, the current SEC Chair, might not retain his position beyond the current administration, regardless of the outcome of the next U.S. presidential election.
Ripple’s Stance on IPO
Discussing the possibility of an IPO, Garlinghouse emphasized that going public is not a priority for Ripple due to its strained relationship with the SEC. He highlighted that Ripple remains financially strong, with investments in various crypto and XRP projects, and is in no rush to pursue an IPO.
Garlinghouse also mentioned that even if Ripple decides to go public, the process could take over a year. For now, they are waiting for the right market conditions and a fair valuation, and Garlinghouse hinted that they would only consider an IPO once Gary Gensler is no longer the SEC Chair.
