Ripple CEO Brad Garlinghouse recently expressed his concerns about the regulatory environment for cryptocurrency startups in the United States, asserting that it is currently one of the most challenging places to launch such ventures. Garlinghouse made these remarks during a panel discussion at Token 2049 in Singapore on September 12.
In his comments, Garlinghouse recommended that entrepreneurs looking to enter the cryptocurrency space should consider other countries like Singapore, the United Kingdom, the United Arab Emirates, and Switzerland as more favorable destinations for their startups. He emphasized the need for the United States to adopt policies that promote crypto innovation while simultaneously safeguarding consumer interests.
Garlinghouse placed much of the blame on the U.S. Securities and Exchange Commission (SEC), claiming that the agency was waging a political battle against the cryptocurrency industry through its legal actions. He argued that the SEC’s approach, which involves suing companies like Ripple and Grayscale, was ineffective and counterproductive. However, he also noted that recent legal victories for Ripple and Grayscale against the SEC could signal a shift in the courts’ attitudes towards the industry.
Ripple CEO on US regulations
While these court outcomes are not legally binding precedents, Garlinghouse believes they offer some degree of clarity for crypto exchanges and custody providers operating in the United States, at least temporarily.
Hong Fang, the president of OKX, acknowledged the political dynamics surrounding cryptocurrency regulation but urged crypto firms to focus on what they can control, such as developing robust technology and supporting responsible regulation.
Despite being a significant market for Ripple, Garlinghouse revealed that his company is expanding its services to countries that he believes have a more progressive stance on blockchain technology and a better understanding of its potential benefits.
During the panel discussion, Fang raised concerns about the readiness of investors for custody solutions tied to a potential spot Bitcoin exchange-traded fund (ETF). He expressed doubt about whether the industry’s infrastructure was prepared for the implications of such a development. Fang highlighted the fact that much of the new blockchain-based infrastructure has not been tested on a large scale, and he questioned whether investors were prepared for Bitcoin’s price volatility.
