Ripple CEO Brad Garlinghouse gave remarks during a panel at Token 2049 in Singapore, expressing concern about the crypto startup landscape in the United States. He stated, “The only country I would not encourage you to start a company right now is the U.S.”
Garlinghouse Calls for US to Emulate Crypto-Friendly Jurisdictions
Garlinghouse, therefore, issued a call to action for the United States to adopt more crypto-friendly regulations, citing Singapore, the United Kingdom, the United Arab Emirates, and Switzerland as examples.
Garlinghouse’s comments emphasize the importance of learning from crypto-friendly jurisdictions around the world. Nations like Singapore have established clear regulatory frameworks that provide certainty for crypto startups while ensuring investor protection.
The United Kingdom, the United Arab Emirates, and Switzerland have also demonstrated their commitment to fostering crypto innovation through well-defined regulations and support for blockchain technology.
His plea comes as the US faces growing scrutiny over its regulatory approach to cryptocurrencies, with Garlinghouse highlighting the need to strike a balance between fostering crypto innovation and protecting consumers.
Ripple CEO on SEC’s Role
In his remarks, the Ripple CEO did not mince words when addressing the SEC’s actions. He accused the SEC of waging a “political war” against the crypto industry through its lawsuits and enforcement actions. This sentiment reflects the frustration felt by many industry players who believe that the SEC’s approach to regulation has been inconsistent and detrimental to innovation.
While regulatory scrutiny is necessary to safeguard investors and ensure market integrity, a heavy-handed approach can impede innovation while driving it abroad.
Garlinghouse’s criticism emphasizes the importance of regulatory bodies engaging in constructive communication with industry stakeholders to achieve a proper balance between regulation and innovation.
Ripple’s Legal Battle with the SEC
Brad Garlinghouse’s comments come in the wake of Ripple’s ongoing legal battle with the U.S. SEC. The SEC alleges that Ripple’s XRP token is a security and that the company conducted an unregistered securities offering. However, a recent ruling from District Judge Analisa Torres has provided partial clarity in the ongoing case, stating that XRP does not constitute securities when trading on exchange platforms.