Ripple CEO Brad Garlinghouse recently addressed the persistent hesitance of U.S. financial institutions to embrace cryptocurrencies like XRP, even after legal victories against the SEC. Speaking at the D.C. Fintech Week conference, Garlinghouse highlighted the U.S. government’s broader, more cautious approach towards cryptocurrencies as a significant factor in this reluctance. He pointed out that despite Ripple’s court win, major financial entities are waiting for clearer guidance from the government before diving into cryptocurrency investments.
Garlinghouse noted the perceived hostility of regulatory bodies such as the Options Clearing Corporation (OCC) towards the crypto industry. He expressed his view that once there is a shift in this stance, U.S. banks are likely to engage deeply with cryptocurrencies. Yassin Mobarak, founder of Dizercapital, echoed these sentiments, suggesting that widespread crypto adoption in the U.S. might hinge on a change in administration.
In a landmark decision in July, a U.S. federal judge ruled that XRP does not constitute a security. This ruling was seen as a positive development for Ripple and XRP and the entire cryptocurrency sector. However, the cautious approach of the United States towards cryptocurrencies stands in contrast to other countries, which are advancing in the field thanks to clear regulations and increased crypto-related investments.
Garlinghouse voiced concerns that the U.S. needs to establish itself as a leader in the global cryptocurrency market. He believes that other markets are becoming more attractive to entrepreneurs and investors in the crypto space as time passes. Nevertheless, he remains hopeful that the U.S. will develop a favorable regulatory environment for cryptocurrencies in the next decade.
Amidst these challenges, Ripple is focusing on expanding its operations internationally. Given the challenging business environment, Garlinghouse questioned the feasibility of scaling their presence in the U.S. He rhetorically asked why the company should invest in expanding its U.S. workforce when the regulatory landscape could be more conducive to its operations.
