• Ripple CEO Brad Garlinghouse is certain crypto and NFTs will flourish on the back of multiple current and emerging utilities.
• Asset tokenization is underhyped, and the global future is multi-chain, he added.

Cross-border remittances company Ripple has expressed great confidence in the relevance of its services and their intersection with cryptocurrencies.

Speaking in a recent interview with CoinTelegraph, CEO Brad Garlinghouse said the firm has now invested $100M in carbon credits.

Notably, the executive spoke while attending this year’s World Economic Forum (WEF) in Davos-Klosters. The annual international event engages global leaders in talks shaping local, regional, and international policies and industries. This time, WEF included in its agenda discussion regarding cryptocurrencies and stablecoins.

NFTs are underhyped: Ripple exec Brad Garlinghouse

According to the Ripple exec, his years-long experience has shown him that the crypto industry is significantly rising in profile.

As leaders across the world learn how these technologies can actually benefit their constituents, benefit their economies, they’re going to use them. […] I think we’re seeing that happen every day.

In his opinion, non-fungible tokens (NFTs) are “underhyped” even though certain segments of the market have generated a huge buzz. More specifically, he said, “The tokenization of various assets is underhyped.”

This, he noted, is what drove Ripple to make a multi-million investment in the sector. The current carbon market is largely “challenged” by fraud. Ripple’s tokenization of carbon credits brings in greater transparency, traceability, and efficacy, attributes he said could “revolutionalize” the industry.

Aside from that, Garlinghouse is convinced cryptocurrencies will see increased and real use cases this year. An example is cross-border transactions, which Ripple is advancing. Garlinghouse noted the downsides to the current cross-border transactions systems, saying they are “usually quite slow, quite expensive and frankly very error-prone.” Differently, Ripple presents high efficiency in addition to low costs, he added.

The future is multi-chain

Even though the businessman upholds the tech firm he manages, he says the future is in a “multi-chain world.” He explained that this is because crypto has diverse use cases which are impossible to handle on a single network. And while Ripple focuses on its objectives, other budding crypto foundations will cater to similar or other utilities.

A case in point here is the tokenized carbon credit startup Flowcarbon by Adam Neumann. Having recently raised $70 million from venture capitalist giants like a16z, the firm is developing a similar product to Ripple’s. Flowcarbon will become a platform for carbon credit sellers and buyers to meet and trade. Sellers benefit from exposure and speed, while buyers are assured of easy access and certified carbon credits.

• Brad Garlinghouse, Ripple CEO has said that 2021 is the strongest year for his company despite the legal struggle with the SEC.

• According to him, many positive metrics were recorded including RippleNet transactions more than doubling in 2021 from the third quarter of 2020.

Ripple was mostly in the news for its legal struggle with the US Securities and Exchange Commission (SEC) in 2021. Brad Garlinghouse, the CEO of Ripple, and Chris Larsen were accused of selling unregistered securities through Ripple. During this period, XRP has found itself in its worst situation after a massive sell-off and getting delisted by several crypto exchanges.

According to the SEC, XRP sales were in the same bracket as a company selling stocks or bonds, so it was supposed to be registered with the Commission. This triggered a panic sale of XRP, causing its price to see a little surge in a year when Bitcoin (BTC) and Ethereum (ETH) recorded new all-time highs. Though many XRP investors will hesitate to call 2021 a successful year, Garlinghouse believes that the year was the strongest for Ripple and a breakthrough year for the crypto industry.

According to him, many positive metrics were recorded including RippleNet transactions more than doubling in 2021 from the third quarter of 2020. Also, the On-Demand Liquidity (ODL) saw a 130 percent increase quarter by quarter and is now accessible in 20 countries globally.

The ODL transaction represented 25 percent of the total dollar volume in the third quarter on the network. The worldwide ODL volume has also seen sustainable growth increasing more than 25 times since the third quarter of 2020.

Ripple CEO says SEC chairman resorts to anti-crypto tone

The company states that RippleNet was designed to ensure that customers switch to ODL after the market matures enough.

This is exactly what’s happening – in fact, three out of five of our highest-transacting customers in 2020 have now upgraded to ODL to leverage the benefits of XRP-powered payments for their business.

Despite the global breakthrough of the Ripple products and services, XRP’s ODL flow has been affected by the regulatory ambiguity in the United States, causing its operation to be suspended. Garlinghouse reemphasized his position on the intention of SEC that the Commission’s action is an attack on the entire crypto industry, not just Ripple.

Of all the shitty things in 2020, this was certainly one to cap the year 🤣. But what I said then remains (painfully) true today: this is an attack on crypto in the US, not just Ripple. Some took the SEC’s allegations at face value/ thought this was a one off, but no longer. 2/10

— Brad Garlinghouse (@bgarlinghouse) December 22, 2021

Commenting on SEC calling crypto a “Wild West”, he mentioned that it is a “farce” as most crypto companies comply with the financial regulations worldwide, and also urged regulators not to impose penalties on businesses that require clarity.

Calling crypto the “Wild West” is a farce – most are complying with financial regulators globally. This industry shouldn’t be punished for asking for regulatory clarity & regulation that is consistently applied with a level playing field.

He noted that developing Web2 involved the contribution of several American firms. With companies relocating outside the US to escape the unfavorable crypto environment, he questions whether Web3 will be the same. He finally accused SEC chairman Gary Gensler of resorting to a rigorous anti-crypto tone.

• SEC Boss Gary Gensler recently refused to comment on whether or not Ethereum is classified as a security.
• Gensler maintained that various aspects of the digital asset ecosystem require regulatory intervention to increase mainstream adoption.

The US Securities and Exchange Commission (SEC) Chair Gary Gensler declined to give a stance on the question of Ethereum’s regulatory status. This is another instance in which the regulatory body has avoided the question of Ethereum’s classification. Former top SEC official William Hinman once stated that Ether is not a security. Later on, however, the agency, on numerous occasions, clarified the matter saying Hinman was merely expressing his personal opinion.

Speaking during a Q&A section at the Aspen Security Forum, Gensler upheld the Howey Test, saying it provides enough clarity on cryptocurrencies’ classification. According to Investopedia, the test “refers to the US Supreme Court case for determining whether a transaction qualifies as an ‘investment contract’, and therefore would be considered a security and subject to disclosure and registration requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.”

In the past, the former crypto and blockchain tech professor has unofficially deemed Bitcoin a commodity. However, in 2018, he claimed that there was a strong case for both [Ether and Ripple] to be classified as securities.

Gary Gensler perspective on crypto regulation

At his recent speech he said he agrees with former SEC Chair Jay Clayton’s opinion on initial coin offerings:

To the extent that digital assets like [initial coin offerings, or ICOs]are securities – and I believe every ICO I have seen is a security – we have jurisdiction, and our federal securities laws apply.

Currently, there are many tokens offered and sold as unregistered securities, Gensler explained. Since these tokens lack requisite disclosures and market oversight, they become open to price manipulation making investors vulnerable.

As for the decentralized finance (DeFi) space, the SEC boss has expressed concerns about it. In a recent interview, he stated that there were “significant gaps” in DeFi when it comes to investor protection. He added that the SEC could “definitely” make use of new staff to help deal with crypto regulations.

Nonetheless, during his Aspen speech, Gensler made it known that he was open to approving a Bitcoin exchange-traded fund (ETF). At the moment though, the financial watchdog is yet to provide a green light for crypto ETFs. Proposals, nevertheless, have continued to pile up, with Cathy Wood’s Ark being the latest to join the bandwagon.

The future of the crypto ecosystem

Concluding his speech, Gensler said he believes the digital asset ecosystem requires regulation if it is to achieve widespread adoption.

Right now, large parts of the field of crypto are sitting astride of – not operating within – regulatory frameworks that protect investors and consumers, guard against the illicit activity, ensure for financial stability, and yes, protect national security.

Should the SEC finally declare Ethereum as a security, the asset could face the same fate as that of Ripple. The latter is currently buried in legal action having being sued by the SEC for the illegal sale of unregistered securities.

In 2018 Bill Hinman said ETH isn’t a security and Jay Clayton agreed. But just weeks ago, Hinman filed a sworn affidavit in Court saying the SEC still has “not taken any position or expressed a view” on ETH’s status…so how is the market supposed to have clarity?! https://t.co/FRAlsfcLoG

— Brad Garlinghouse (@bgarlinghouse) August 4, 2021