Ripple CEO Brad Garlinghouse has praised former President Donald Trump’s proposal to create a government-backed digital asset reserve, which includes XRP, calling it a potential turning point for the cryptocurrency sector.
In a tweet on Sunday, Garlinghouse expressed optimism that the initiative could signal a shift in the industry, moving away from the regulatory hurdles that have long impeded its growth.
“I’ve said this before: the crypto industry will achieve its goals, and beyond, if we work together,” Garlinghouse stated, referencing Trump’s vision of making the U.S. the “Crypto Capital of the World.”
Garlinghouse’s comments even as the U.S. cryptocurrency market continues to grapple with ongoing regulatory challenges, especially as the SEC continues its legal actions against major players in the space, including Ripple, Kraken, and Pulsechain. However, as of March 3, the SEC had dropped cases against Coinbase and ConsenSys and paused proceedings against Binance and Tron while discussions on potential resolutions continue.
Despite these developments, the regulatory environment remains tense, especially following former SEC Chairman Gary Gensler’s departure. While Trump’s support for crypto is viewed as a positive sign, the industry still faces challenges due to controversial enforcement policies and a lack of clarity surrounding digital asset regulation.
Garlinghouse hoped that Trump’s proposal could help bridge the divide between the government and the crypto sector.
“I’m glad to see POTUS recognizing we live in a multichain world and that we’re finally moving past Bill Hinman and the Biden administration’s SEC’s outdated approach,” Garlinghouse added, emphasizing the need for a more modern and comprehensive regulatory framework.
The proposal aligns with broader efforts to address the evolving regulatory landscape for digital assets. Under SEC Commissioner Hester Peirce’s leadership, the agency has begun reevaluating its approach to crypto regulation, with some analysts predicting a shift away from the more stringent enforcement practices that marked Gary Gensler’s tenure.
Meanwhile, the ongoing legal battle between Ripple and the SEC remains a key focus point within the cryptocurrency industry. While the case has yet to resolve, many experts speculate that the SEC may ultimately choose to drop its charges against Ripple, particularly given the current ambiguity surrounding the application of the Howey Test in determining whether digital assets should be classified as securities.
On Sunday, legal analyst Jeremy Hogan suggested that the delay in resolving the case is likely due to the injunction imposed by Judge Torres, which prohibits Ripple from selling its digital assets directly to customers. Hogan noted that while he expects both parties to reach a mutual agreement to dissolve the injunction eventually, the process is complex. This, he explained, could be a key reason why the case may not be resolved until April or May.
