Garlinghouse feels that nations like Australia, Japan, and Singapore did the right thing by implementing strong crypto regulations.
Due to regulatory uncertainties, Ripple’s CEO, Brad Garlinghouse, believes the United States has fallen behind other countries in the crypto space.
He connected the technology’s potential to that of the Internet, emphasizing America’s willingness to embrace it in the 1990s despite the relative ignorance of its benefits.
In a recent interview with Bloomberg, Garlinghouse argued that countries such as Australia, Japan, Singapore, the United Kingdom, and Switzerland have already imposed comprehensive regulations on the cryptocurrency industry, thereby encouraging investors and entrepreneurs to operate on their territory:
“There are several nations that have taken the time and made the effort to establish clear traffic regulations.”
He encouraged the US government, notably the SEC, to follow suit and stop the outflow of talent overseas.
Concerning the early days of the Internet, Garlinghouse praised the United States for establishing appropriate laws in the late 1990s, which has enabled it to become the technological center that it is today:
“Consider the geopolitical advantages to the United States of having Amazon and Google headquartered in the country.”
He believes that the optimal cryptocurrency regulation structure should prioritize consumer protection. Also, the SEC must stop treating every asset as a security and stop treating the world like a nail. “It’s not always the case that they will be considered securities; in fact, some of them serve as currency.”
Recently, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), restated his belief that “anything other than bitcoin” is security. As a result, he requested that all crypto transactions, except for BTC transactions, be monitored and regulated by the agency.
In 2020, the United States securities regulator filed an action against Ripple, claiming the company’s leaders improperly issued XRP tokens to investors without first classifying them as securities. While the legal dispute has not yet been resolved, Garlinghouse feels that its resolution will be “crucial” for the whole industry.
“The SEC’s case against Ripple is not just about Ripple or XRP; it’s about the industry and how the SEC will play offence and target the sector as a whole.”
The chief executive officer argued that the regulator’s method of establishing norms via enforcement is inappropriate. Instead, it should permit the development of the technology while maintaining optimum investor protection.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.