Brad Garlinghouse, CEO of Ripple (XRP), says the U.S. is lagging behind some countries in regulation in favor of cryptocurrencies due to its tough stance on the industry. said.
US Crypto Regulation Lags
On Bloomberg March 2nd interviewGarlinghouse accused US crypto regulations of stifling innovation in the field. He said:
“The sad reality is that the United States is already falling behind … Australia, the United Kingdom, Japan, Singapore, Switzerland and other countries that have spent the time and thoughtfulness to create clear rules. I am falling behind.”
His views are in line with other crypto insiders who have argued that the US approach is hurting the industry.
The CEO noted that US regulators’ approach to crypto is different from how the internet was treated decades ago. It has created an enabling environment and brought great benefits to the economy.
“Crypto moving offshore is not good for American innovation.”
However, the state’s approach to cryptocurrencies has forced some innovators offshore. He added that consumers have suffered because offshore regulatory standards do not provide the strong consumer protections that the United States can guarantee.
In his view, a good regulatory framework should start with clear consumer protection, but it should also better understand that not all digital assets are securities.
On February 9th, Ripple’s chief highlighted various recent regulatory developments made by several countries. According to him, these developments were “energizing” and “desperately lacking in the United States.”
Garlinghouse Criticizes SEC
Meanwhile, Garlinghouse criticized the U.S. Securities and Exchange Commission’s (SEC) regulation-by-regulation approach to the cryptocurrency industry. According to him, the SEC behaves like a man with a hammer who sees every problem as a nail.
Garlinghouse said lawsuits between financial regulators and crypto clearing firms would play a pivotal role in the country’s crypto regulation. He added that the incident demonstrates the SEC’s aggressive approach to the cryptocurrency industry.
Since the SEC filed a lawsuit against Ripple in 2022, financial regulators have taken several enforcement actions against cryptocurrency companies that they claim violated federal securities laws.