BlocksInform
Brad Garlinghouse, the CEO of Ripple Labs, has expressed his cautious optimism about regulatory clarity for the crypto industry potentially coming to the United States in 2023.
2023 will see the introduction of regulatory clarity.
In commemoration of the first day of the 118th Congress, Ripple CEO Brad Garlinghouse expressed his optimism for 2023 as the year when the United States achieved regulatory clarity for cryptography. In his Twitter thread on Jan 3, Garlinghouse said support for crypto regulation is “bipartisan and bicameral”.
He went on to point out that the United States would not start with a regulatory whitelist, quoting from bills like the Clarity Act, the facilitation of cryptocurrencies for investors and the law on digital assets (rfia), and clearing digital chips. When no bill has yet met the expectations of everyone, the wave leader explained that they would provide a starting point for the debate in the new congress as "the stakes could not be higher".
For years, industry leaders, investors and manufacturers in the cryptosphere have been complaining about the uncertainty in the regulatory environment. The hopeful narrative argues that increased regulation will lead to increased institutional dollars and buoy prices.
In 2022 there was some progress on the regulatory front for U.S. crypto-based companies — among other things, President Joe Biden signed an executive order on crypto — but the year did not bring as much clarity as many expected.
In fact, the situation as a whole has only gotten worse as the Terra system has collapsed and swallowed up $60 billion in funds for customers, Then came the spectacular implosion of the FTX empire of Sam Bankman-Fried.
Garlinghouse pointed out that the United States lags behind Singapore, Brazil, the European Union and Japan in regulating and legislating cryptography. The lack of coordination, both in the United States and internationally, forces companies to move to countries where there are fewer obstacles, which sometimes leads to disastrous consequences.
It is essential that the United States give clear and precise instructions as to what is permitted and what is not. After years of dithering, legislators need to clarify whether crypto is security, utility, merchandise, or currency.
However, they have to take action to ensure that the United States is a leader in this new area of fintech. Additionally, they must also protect the investing public from fraudsters like Bankman-Fried.
2023 proves to be the crucial year for the regulation of the cryptocurrency in the country of freedom remains to be seen.
