Ripple CEO Criticizes US Regulation and Encourages Crypto Startups to Look Elsewhere
Ripple Labs CEO Brad Garlinghouse has stated that the United States is the worst place in the world for crypto startups and advises entrepreneurs to consider other countries for their ventures. Speaking at a conference in Singapore, Garlinghouse emphasized that nations like Singapore, the UK, the United Arab Emirates, and Switzerland are leading the way in providing clear regulations and support for the crypto industry. As Ripple expands its operations in overseas markets, Garlinghouse revealed that 80% of its new hires this year will be recruited from outside the US.
Garlinghouse Criticizes US Regulatory Clarity
Garlinghouse expressed his frustration with the lack of regulatory clarity in the US. He criticized SEC chair Gary Gensler, referring to him as a hammer who sees everything as a nail. According to Garlinghouse, confusion gives power to regulatory authorities like the SEC, leading them to file lawsuits. Ripple has been engaged in a legal battle with the SEC since 2020 over allegations of selling $1.3 billion worth of XRP without proper registration. Despite this, Garlinghouse remains confident about Ripple’s chances of winning.
The Shifting Momentum
Garlinghouse believes that momentum is shifting in favor of crypto companies in legal battles against regulators. He noted that judges are no longer automatically siding with the SEC and are starting to challenge its authority. In July, Ripple had a partial legal win against the SEC, while Grayscale Investments recently scored a more decisive victory against the regulator regarding spot Bitcoin ETFs. Garlinghouse sees these outcomes as indicative of a changing pattern and increasing recognition of the crypto industry’s legitimacy.
Hot Take: The Need for Regulatory Clarity
Brad Garlinghouse’s criticism of the US regulatory environment highlights the importance of clear and supportive regulations for the growth of the crypto industry. As the global crypto market continues to expand, countries that provide a favorable regulatory framework will attract innovative startups and investment. The US risks losing out on these opportunities if it fails to address the concerns raised by industry leaders like Garlinghouse. It is crucial for regulators to strike a balance between protecting investors and fostering innovation in order to maintain their country’s competitiveness in the evolving digital economy.
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