Ethereum-based ETFs have made rapid progress with the unexpected approval of important filings by the US Securities and Exchange Commission (SEC) last period. However, final approval still needs to be given for these ETFs to be traded. ARK Invest CEO Cathie Wood also suggested in her speech at the Consensus conference that these Ether ETFs were approved because cryptocurrencies have now become an election issue.

While Garlinghouse acknowledged that the ETFs in question must go through a significant regulatory process before being approved, he predicted that this process would ultimately be just a “speed bump.” His main concern is the US government’s unclear approach to regulating the cryptocurrency market.

Garlinghouse criticized SEC Chairman Gary Gensler and expressed his discomfort with his lack of a clear answer to the question of whether Ether was a security or not. Garlinghouse argued that although Gensler said the rules were clear and did not need to be updated, that was not actually the case.

In 2022, the SEC kept secret documents from William Hinman’s 2018 speech. In this conversation, Hinman explained that he did not see Ether as a security. Ripple gained access to these confidential documents after being sued by the SEC, stating that the documents reveal that there were extensive discussions within the SEC regarding Ether’s security status.

Garlinghouse accused the United States, the world’s largest economy, of representing the “bottom ten percent of regulatory clarity.” He stated that he found it pointless that Gensler was trying to regulate cryptocurrencies based on the Howey Test from 70-80 years ago. Garlinghouse argued that this attitude of the SEC turned into a political responsibility and even reached a level that would affect the US presidential race.

Garlinghouse also touched upon the change in Ripple’s recruitment strategy. Stating that 75% of the company’s new recruitments in 2022 were made in locations outside the USA, Garlinghouse said that this year’s rate was around 60% and important offices were opened in London, Geneva and Singapore. Garlinghouse stated that this hiring trend is part of Ripple’s strategy to focus on regulatory clarity and the locations of its customers.

Finally, Garlinghouse underlined that it is critical to clarify the approach of regulatory authorities to the cryptocurrency market in the USA. He emphasized that providing a clear regulatory environment will pave the way for the healthy development of the cryptocurrency market.