BlocksInform
Brad Garlinghouse, CEO of Ripple, thinks we are already lagging behind other countries when it comes to cryptography due to regulatory uncertainty.
He compared the potential of technology to the Internet, stressing the decision of the United States to adopt it in the 1990s, although its merits were relatively unknown at the time.
The US is Now Catching up
In a recent interview for Bloomberg, Garlinghouse argued that countries like Australia, Japan, Singapore, the UK, and Switzerland have already imposed comprehensive rules on the cryptocurrency sector and thus encouraged investors and entrepreneurs to operate on their soil:
"Many countries have taken their time and consideration to create these clear rules of the road."
He advised the American government, specifically the SEC, to do the same and cease the talent EXODUS offshore.
Garlinghouse provided an example of the beginnings of the Internet, Praise the United States for having put in place appropriate regulations in the late 1990s that enabled it to become the technological centre it is today:
“Look at the benefits to the United States on a geopolitical basis: to have the Amazons and Googles based and headquartered in the US.”
He thinks the best crypto regulatory framework should mainly focus on consumer protection. At the same time, the dry should stop acting like a "hammer" and see everything as "nails" but realize that not every asset is a stock.
“These are not always securities, some of them are used as foreign exchange."
The SEC’s Chairman – Gary Gensler – recently reiterated his opinion that “everything other than bitcoin” is a security. In this regard, he emphasized that all crypto transactions, with the exception of those involving the BTC, should be monitored and supervised by the agency.
SEC-Ripple Case Will Echo Across the Entire Industry
America’s securities watchdog launched a lawsuit against Ripple in 2020, alleging the latter’s executives illegally sold XRP tokens to investors without first registering them as securities. Although the legal battle has not yet been settled, Garlinghouse believes that its result will be "essential" for the entire industry.
“The SEC proceeding against Ripple is not just Ripple's or XRP's business, this is really about the industry and how the SEC will go on the offensive and attack the industry as a whole."
The Chief Electoral Officer felt that the way the regulator sets the rules through the application of the act is not the way to go. Instead, it should allow technology to grow while keeping investors as safe as possible.
