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Ripple should have engaged with regulators sooner, CEO admits

Ripple should have engaged with regulators sooner, CEO admits

Ripple should have initiated discussions with U.S. regulators much earlier, according to CEO Brad Garlinghouse. The company is now working to make up for lost time.

Ripple's lesson: the importance of dialogue with regulators

Ripple Labs CEO Brad Garlinghouse acknowledges that the company was late to recognize the importance of engaging with regulators early on. The focus is now on addressing this missed opportunity, especially in the U.S., where the crypto industry is facing legal challenges. In recent years, Garlinghouse has spent significantly more time in Washington, D.C., to mitigate these issues.

Regulatory lag in the U.S.

According to Garlinghouse, the U.S. is falling behind other countries in crypto regulation. The role of the SEC (Securities and Exchange Commission) has created tension within the industry, with Ripple being one of the companies involved in legal battles. Despite a previous ruling that XRP, Ripple's token, is not considered a security for retail traders, uncertainty remains regarding its sale to institutional investors.

The challenge for Ripple

Ripple is now actively working to promote education within the crypto space and demonstrate that the industry is taken seriously by professionals. Past incidents, such as those involving Sam Bankman-Fried, have damaged the industry's reputation. Garlinghouse emphasizes that Ripple is committed to proving the sector‘s reliability and taking responsibility for its actions.

The future of XRP and ETFs

Garlinghouse is optimistic about the future of XRP in the realm of exchange-traded funds (ETFs). He believes it is inevitable that XRP will eventually be offered in a spot-ETF in the U.S., similar to Bitcoin and Ether. This is driven by growing interest from both institutional and retail investors seeking access to these assets.

Ripple continues to push for a stronger crypto market and maintain an open dialogue with regulators while also leveraging political contributions to increase its influence. The company sees a growing role for XRP and other cryptocurrencies in the future of finance.