Ripple CEO Garlinghouse Labels US SEC ‘Luddites’; US Market Exit Ahead?

by

As a researcher with a background in technology and finance, I have closely followed the developments in the crypto industry, particularly the ongoing regulatory landscape and Ripple’s stance towards it. Having read the recent interview of Brad Garlinghouse at Fortune Brainstorm Tech 2024, I find myself deeply resonating with his perspective as someone who has experienced firsthand the challenges posed by U.S. crypto regulations.

At the Fortune Brainstorm Tech 2024 conference, Ripple CEO Brad Garlinghouse openly criticized the U.S. Securities and Exchange Commission (SEC). He derisively referred to the SEC as “Luddites,” expressing his exasperation with the regulatory environment in the United States. Moreover, his latest remarks have ignited debates about Ripple potentially leaving the American market.

Ripple CEO Shows Dismay With US Crypto Regulation

During the interview, Brad Garlinghouse expressed his worries about the regulatory landscape in the United States. He reminisced about the turmoil experienced by Ripple when the US government filed a lawsuit against the company, leading to several employees departing in the initial stages.

“During the legal action initiated against Ripple by the US government,” Ripple’s CEO remarked, “it’s a rather intimidating experience.” He further disclosed that the company, headquartered in San Francisco, experienced a significant wave of employee departures during this time.

Despite facing various obstacles, Ripple managed to achieve remarkable expansion in the two years following the lawsuit. This was achieved by broadening its business beyond the US borders. According to Garlinghouse, an impressive 95% of Ripple’s customer base and transaction volume now originate from markets outside the US.

He expressed regret over this change, pointing out that approximately 75% of Ripple’s new hires in the previous two years were from outside the US. Garlinghouse wondered aloud, “Why hire staff here when your consumer base isn’t?” This tactic highlights Ripple’s commitment to being geographically proximate to its international clientele.

During the discussion, Garlinghouse highlighted the paradox of the United States missing out on lucrative employment opportunities and technological advancements because of regulatory ambiguity. He expressed his preference for the clearer regulatory environments in countries such as Japan, the UAE, Singapore, and the European Union.

According to Garlinghouse’s perspective, these regions provide a more favorable setting for the advancement of blockchain and cryptocurrency technologies. He lamented that the US has lagged behind in this field, regretting that it could have taken the lead in addressing related challenges. However, he cautioned that this SEC administration may be viewed unfavorably in history for being resistant to innovation.

Political Dynamics In the Nation

Instead of criticizing the SEC harshly, Ripple’s CEO expressed his amazement over the politically charged atmosphere surrounding cryptocurrency regulation in the United States. He was taken aback by the fact that this innovative technology had turned into a contentious political topic.

As someone who grew up in Kansas and has since become an investor in the dynamic world of cryptocurrencies, I find it astonishing that this technology has turned into a contentious political issue. Senator Elizabeth Warren’s perspective, which paints all crypto usage as the domain of nefarious actors, is both narrow-minded and misleading.

Biden’s opposition to cryptocurrency might not win him any additional votes, according to a post that was in agreement with Garlinghouse’s perspective. On the other hand, Trump’s pro-crypto stance could potentially attract a significant number of voters. However, it’s important to note that some prominent Democrats are currently working on resolving the crypto issue.

I’ve been championing the need for clear-cut cryptocurrency regulations for the past five years, and I remain optimistic that this will become a non-political issue someday. Yet, I can’t ignore the current political divide. In my opinion, “Republicans are strategically planning their moves while Democrats are focusing on single issues” when it comes to crypto policy.

Simultaneously, he made these remarks as the value of XRP was surging significantly. At the point of composition, its price exceeded $0.58, having previously jumped over $0.59.

Read More

2024-07-16 23:09