Ripple CEO Brad Garlinghouse Flags US Regulatory Hostility Risking Market Share

Ripple CEO Brad Garlinghouse warns about the risks to the US market share due to perceived regulatory hostility.
Despite recent court victories, Ripple faces challenges in the US due to unclear policy guidance and perceived hostility towards the crypto industry.

Ripple’s CEO, Brad Garlinghouse, recently addressed the DC Fintech Week conference, emphasizing the potential repercussions of regulatory challenges faced by Ripple and the broader cryptocurrency industry within the United States.

Garlinghouse acknowledged Ripple’s legal success against the SEC but highlighted concerns about the cautious stance adopted by some US banks toward meaningful involvement with cryptocurrencies. He attributed this wariness to the perceived hostility of US regulatory bodies, including the SEC and the Office of the Comptroller of the Currency (OCC).

Despite the court victory in July, Garlinghouse expressed apprehension regarding the overall stance of the SEC and its Chairman Gary Gensler, who has referred to the crypto market as the “Wild West.” According to Garlinghouse, this perception impedes the growth of the industry in the US.

Garlinghouse’s Firm Commitment to Legal Resolution

Garlinghouse emphasized the contrasting approach of other countries that actively welcome crypto companies with clear regulatory policies. He warned that the US’s reluctance could result in a loss of market share and hinder its early advantage in the crypto space. However, he maintained that the US could still lead but stressed the urgency of establishing transparent and supportive regulatory frameworks.

To navigate these challenges, Garlinghouse revealed Ripple’s plans to expand its operations outside the US, with 80% of its hiring in the current year to be conducted abroad. The necessity to operate in more favorable regulatory environments reflects Ripple’s concerns regarding the inhibitive climate in the US.

Additionally, the CEO expressed a commitment to escalating Ripple’s legal battle with the SEC to the Supreme Court, underlining the company’s determination to resolve regulatory uncertainties surrounding XRP.

Garlinghouse’s remarks serve as a highlight of the persistent regulatory hurdles faced by Ripple and the broader crypto industry in the US. Despite legal victories, perceived regulatory hostility and a lack of clear policy guidance pose significant challenges. Ripple’s proactive approach to global expansion underscores the urgent need for more supportive regulatory frameworks to foster innovation and maintain the US’s competitiveness in the evolving cryptocurrency landscape.