Brad Garlinghouse, CEO of Ripple, has raised serious concerns about the difficulties faced by cryptocurrency startups trying to launch in the United States. Currently, his company is locked in a legal battle with the U.S. Securities and Exchange Commission (SEC). Garlinghouse stated that the U.S. is potentially the least conducive place for such ventures globally.
During the Token 2049 event in Singapore on September 12, Garlinghouse urged for the implementation of progressive crypto policies. He cited examples from countries like Singapore, the United Kingdom, the United Arab Emirates, and Switzerland.
Additionally, he highlighted the importance of regulatory frameworks that support crypto innovation while ensuring consumer protection.
Ripple CEO Insights on Regulatory Challenges in the Crypto Industry
Garlinghouse pointed to the SEC’s actions as the source of challenges for the U.S. crypto industry. He characterized them as more of a political confrontation than a constructive regulatory approach.
He noted that the SEC’s lawsuit strategy has proven ineffective. Garlinghouse also highlighted recent legal wins by Ripple and Grayscale as signs of a changing legal landscape.
Hong Fang, the president of OKX, acknowledged the political dynamics in play. She encouraged crypto firms to focus on their areas of influence, such as product development and technological advancement. Additionally, she emphasized the importance of supporting responsible regulation.
Even though the U.S. is a major market for Ripple, Garlinghouse disclosed plans to broaden the company’s services. This expansion aims to target countries he views as more forward-thinking and open to realizing the potential benefits of blockchain technology.
Outlook on a Spot Bitcoin ETF
Regarding the prospect of a spot Bitcoin exchange-traded fund (ETF), Hong Fang expressed reservations about investor readiness.
He pointed out that the blockchain-based infrastructure supporting such a product has not undergone widespread testing and questioned whether the industry is prepared for the volatility associated with Bitcoin and the development of additional applications on its blockchain.
In summary, Brad Garlinghouse voiced his concerns about the challenges facing crypto startups in the United States and called for regulatory reforms, citing more crypto-friendly jurisdictions as examples to follow. Meanwhile, Hong Fang highlighted the potential implications and uncertainties surrounding the introduction of a spot Bitcoin ETF.
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