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Insights from Ripple’s CEO on the “Trump Trade” and Crypto Prices
In a recent conversation with FOX Business, Brad Garlinghouse, the CEO of Ripple Labs, shared his perspectives on the so-called “Trump trade” influencing the surge in crypto prices. This trend is particularly evident with Bitcoin achieving consecutive all-time highs over the past 48 hours. Garlinghouse further elaborated on Ripple and the broader digital asset sector’s position within the anticipated regulatory environment following President-elect Donald Trump’s tenure.
Ripple CEO Optimistic About Trump’s Pro-Crypto Stance
Garlinghouse highlighted Ripple’s primary mission since its inception: to address the inefficiencies inherent in traditional cross-border payment systems, which he described as both “slow and expensive.” By leveraging XRP, Ripple seeks to enhance these transactions, ensuring they are not only faster but also more cost-effective.
However, he criticized the current administration’s approach to digital assets, labeling it as an “unlawful war” against the industry. Garlinghouse expressed hope that Trump’s pro-crypto outlook could signal a positive shift in the landscape.
Challenges and Opportunities in the US Market
When queried about the potential for increased revenue opportunities in the US under anticipated regulatory changes, Garlinghouse explained that the US Securities and Exchange Commission’s (SEC) lawsuit against XRP has effectively “frozen” Ripple’s market potential domestically. Presently, 95% of Ripple’s clientele resides outside the US, and Garlinghouse pointed out that the company is unable to fully capitalize on growth in a market where regulatory clarity remains elusive.
Despite the rapid growth of the cryptocurrency industry in regions such as China, Japan, the UK, and Switzerland, Garlinghouse noted that the US has been slow to embrace digital assets. He expressed optimism that the anticipated deregulation under Trump would pave the way for clearer guidelines, enabling agencies like the SEC and the Commodity Futures Trading Commission (CFTC) to play a constructive role in shaping the industry.
Garlinghouse criticized the current regulatory framework, particularly the application of the Howey Test, which he believes does not adequately address the unique attributes of the crypto sector. He stressed the necessity for updated regulations that reflect the realities of a rapidly evolving industry.
US Poised to Become a Digital Asset Hub
During the interview, FOX Business highlighted comments from Coinbase’s Chief Policy Officer, Faryar Shirzad, concerning a private meeting between Trump and Brian Armstrong, Coinbase’s CEO. Shirzad noted that Trump has shown a willingness to engage with the crypto industry, envisioning the US as a potential global leader in digital assets.
Echoing these sentiments, Garlinghouse recognized Coinbase’s influential role in advocating for the cryptocurrency agenda during the election campaign. As speculation builds around possible candidates for the SEC chair position under Trump, including names like Dan Gallagher, Teresa Goody, and Commissioner Mark Uyeda, Garlinghouse emphasized the importance of the new chair collaborating with Congress to address regulatory gaps that contribute to market confusion.
Looking Towards a New Era for Cryptocurrency in the US
Concluding on an optimistic note, Garlinghouse shared his belief in the dawn of a new era for cryptocurrency in the United States. He envisions the country evolving into a central hub for digital assets and blockchain technology over the next five to ten years.
Currently, XRP’s price is consolidating above the crucial $1 level, marking a significant 104% surge in just two weeks since Trump’s election victory. However, the token still trades 67% below its all-time peak of $3,040, reached nearly seven years ago.
