Ripple CEO Brad Garlinghouse Critiques U.S. Crypto Ecosystem
Brad Garlinghouse, the CEO of Ripple, has voiced his concerns about launching cryptocurrency startups in the United States, describing it as one of the least favorable places globally for such endeavors. His comments come amidst a legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).
Garlinghouse's Recommendations for Crypto-Friendly Jurisdictions
During a panel discussion at Token 2049 in Singapore on September 12, Garlinghouse highlighted countries such as Singapore, the United Kingdom, the United Arab Emirates, and Switzerland as examples of jurisdictions with "smart" cryptocurrency policies that the U.S. should consider adopting. He emphasized the importance of policies that promote crypto innovation while safeguarding consumers.
Blaming the SEC's Lawsuits
Garlinghouse placed blame on the SEC for its legal actions against the cryptocurrency industry, characterizing it as engaging in a political battle. He expressed skepticism about the effectiveness of the SEC's lawsuit strategy and pointed to recent court wins by Ripple and Grayscale as potential indicators of a shift in the court's attitude toward the industry.
Changing Judicial Perceptions
Although the outcomes in the Ripple and Grayscale cases do not have legal binding, Garlinghouse suggested that they provide greater clarity to crypto exchanges and custody providers operating in the U.S., at least in the short term. He mentioned a potential shift in the perception of the SEC's infallibility among judges.
Focusing on Crypto Innovation and Responsible Regulation
Hong Fang, President of OKX, acknowledged the political nature of the crypto industry but emphasized the importance for crypto firms to concentrate on what they can control. She urged companies to prioritize building the right products, advancing technology, and supporting responsible regulatory efforts.
Expanding Beyond the U.S.
Despite the U.S. being a significant market for Ripple, Garlinghouse revealed the company's expansion plans to countries that exhibit more progressive attitudes toward blockchain technology and a deeper understanding of its potential benefits.
Caution Regarding Spot Bitcoin ETFs
During the panel, Hong Fang expressed reservations about the readiness of investors for custody solutions associated with a prospective spot Bitcoin exchange-traded fund (ETF). She raised concerns about the need for further testing of blockchain-based infrastructure and questioned whether the industry was prepared for the potential impact of Bitcoin's volatility.