Brad Garlinghouse Urges Crypto Startups to Avoid the U.S. Due to Lack of Clear Regulations
Brad Garlinghouse, CEO of Ripple Labs, advised cryptocurrency startups to steer clear of the United States due to its inadequate crypto regulations. Speaking at the TOKEN2049 event in Singapore, Garlinghouse emphasized that countries like the U.K., Singapore, and the United Arab Emirates have implemented clear rules that foster innovation and protect investors.
Garlinghouse placed blame on the U.S. Securities and Exchange Commission (SEC) for creating an unfavorable environment for the crypto industry through its lawsuits. The SEC has filed lawsuits against various digital asset platforms this year, including Binance, Coinbase, Kraken, and Ripple Labs. The agency has classified many crypto tokens as securities and demanded registration.
However, Garlinghouse believes that the tide is turning in favor of the crypto industry within the American judiciary system. Recent court victories by Ripple and Grayscale against the SEC indicate a shift in momentum.
Ripple Shifts Focus to Offshore Regions
Hong Fang, president of OKX crypto exchange, echoed Garlinghouse’s sentiments and advised crypto firms to concentrate on building technology, products, and supporting responsible regulation. Despite the recent legal victories providing some clarity for the U.S. crypto industry, Ripple has decided to prioritize offshore regions. The company plans to hire 80% of its staff outside of the U.S. this year.
Hot Take: Ripple CEO Warns Against Launching Crypto Startups in the U.S.
Brad Garlinghouse, CEO of Ripple Labs, has cautioned cryptocurrency startups about launching operations in the United States. He highlighted the lack of clear regulations as a major drawback for digital asset companies in the country. Garlinghouse urged crypto startups to look to nations like the U.K., Singapore, and the United Arab Emirates that have implemented transparent rules to encourage innovation and protect investors.
Garlinghouse placed blame on the SEC for creating an unfavorable environment through its lawsuits against various crypto platforms. However, he noted that recent court victories by Ripple and Grayscale against the SEC demonstrate a shift in favor of the crypto industry within the American judiciary system. Despite these victories, Ripple has chosen to focus its efforts on offshore regions, with plans to hire the majority of its staff outside of the U.S. this year.
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