Ripple CEO Brad Garlinghouse has expressed his views on Ripple's valuation and the regulatory landscape affecting the cryptocurrency sector.
Garlinghouse believes that Ripple's previous valuation of $11 billion is outdated and that the value of XRP held by the company itself exceeds $100 billion. He also highlighted the growing confidence in Ripple's market position compared to other crypto-linked companies, pointing out that Ripple's private market trading has been cheaper than firms like MicroStrategy. He believes that Ripple is potentially undervalued in the current market.
Garlinghouse discussed Ripple's plans to launch a new stablecoin called Ripple USD, which aims to enhance the liquidity of the XRP Ledger. He emphasized Ripple's experience in working with financial institutions and managing payment flows, positioning the company to deliver a stablecoin that users can trust globally. The introduction of Ripple USD is seen as a strategic move to improve the efficiency of transactions within the XRP ecosystem.
Garlinghouse addressed the legal challenges Ripple faces, particularly the lawsuit with the SEC. He mentioned that the legal battle has temporarily affected Ripple's growth, leading the company to focus on international markets. Currently, the majority of Ripple's customers are non-U.S. financial institutions, highlighting the company's adaptability in navigating regulatory hurdles.
Garlinghouse criticized the SEC's regulatory approach, calling it "abusive" and counterproductive. He expressed hope that the regulatory environment would become more favorable under the new administration, potentially clarifying the treatment of digital assets. Garlinghouse is optimistic that new regulations could emerge in the first half of 2025, potentially shifting the responsibility for crypto regulation from the SEC to the CFTC.
Legal expert John Deaton speculated that Ripple may go public between the fourth quarter of 2025 and the first quarter of 2026, depending on the SEC's new leadership. He suggested that a resolution to the ongoing case could occur swiftly if the new SEC chairman adopts a more lenient stance.
Garlinghouse's comments reflect the cryptocurrency community's desire for clearer regulatory frameworks. He believes that the recent election has created more business opportunities for Ripple within the U.S., indicating a potential shift in market dynamics as regulatory clarity improves.
As Ripple faces challenges and opportunities, the company's leadership remains focused on leveraging its strengths in institutional partnerships and payment solutions. The anticipated launch of Ripple USD and the potential for a public offering demonstrate Ripple's proactive approach to establishing itself as a leader in the evolving cryptocurrency landscape.