The US, according to Ripple CEO Brad Garlinghouse, is already falling behind other countries in the cryptocurrency market due to regulatory uncertainties. He contrasted the potential of the technology to the Internet, emphasizing America’s decision to adopt it in the 1990s despite the fact that its benefits were largely unappreciated at the time.
In a recent interview with Bloomberg, Garlinghouse argued that nations like Australia, Japan, Singapore, the UK, and Switzerland have already implemented thorough regulations on the cryptocurrency industry, enticing investors and business owners to set up shop there. “There’s a lot of countries that have taken their time and thoughtfulness to create that clear rules of the road,” he said.
He gave the US government, in particular the SEC, advice to follow suit and stop the flow of talent abroad.”Look at the benefits to the United States on a geopolitical basis: to have the Amazons and Googles based and headquartered in the US,” Garlinghouse said, using the early days of the Internet as an example. He praised the US for establishing proper regulations in the late 1990s that allowed it to transform into the technology hub it is today.
He believes that the optimum regulatory structure for cryptocurrencies should prioritize
consumer protection. The SEC should also stop treating everything as though it were a nail and cease acting like a hammer, while also realizing that not all assets are securities.
Some of them are utilized as currencies, therefore they won’t always be securities. Gary Gensler, the chairman of the SEC, recently reaffirmed his belief that “everything but bitcoin” is a security. As a result, he argued that the government should monitor and oversee all cryptocurrency transactions, save from those using BTC.
In 2020, the US Securities and Exchange Commission filed a lawsuit against Ripple, claiming that its officials had sold XRP tokens to investors without properly registering them as securities. Garlinghouse thinks the outcome of the legal dispute, despite the fact that it has not yet been resolved, will be “pivotal” for the industry as a whole.
The SEC’s lawsuit against Ripple is truly about the sector as a whole and how the SEC plans to play offense and take on the whole market, not just Ripple or XRP, according to the SEC. The CEO expressed his opinion that the regulator should not establish regulations through enforcement. Instead, it should permit technological advancement while offering investors the highest level of protection.