According to Ripple CEO Brad Garlinghouse, the United States is currently one of the least favorable places to launch a cryptocurrency startup in the world.
His assertion comes amidst a legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).
Speaking at the Token 2049 conference in Singapore on September 12, Garlinghouse expressed his concerns, stating that he would not encourage anyone to start a crypto company in the U.S. at this time.
Garlinghouse emphasized that the U.S. needs to take a cue from countries like Singapore, the United Kingdom, the United Arab Emirates, and Switzerland, which have implemented policies that foster cryptocurrency innovation while ensuring consumer protection.
He firmly placed the blame on the SEC, accusing the regulatory body of waging a political war against the crypto industry through its lawsuits.
Garlinghouse contended that the SEC’s lawsuit strategy was ineffective and pointed to recent court victories by Ripple and Grayscale as indicators that the tide might be turning in favor of the crypto industry.
Although these court decisions are not legally binding, he argued that they offer some much-needed clarity to crypto exchanges and custody providers operating in the U.S., at least temporarily.
READ MORE: Bitcoin Rebounds from Three-Month Lows Amid Traders’ Doubts
Hong Fang, President of OKX, acknowledged the political aspects of the situation but urged crypto firms to concentrate on what they can control – building the right products, focusing on technology, and supporting responsible regulations.
Despite the U.S. being a significant market for Ripple, Garlinghouse disclosed that the company is expanding its services to countries that he believes have a more progressive outlook and a better understanding of blockchain technology’s potential benefits.
During the panel discussion, Hong Fang expressed reservations about the readiness of investors for custody solutions built around a potential spot Bitcoin exchange-traded fund (ETF).
He highlighted concerns about the untested nature of much of the new blockchain-based infrastructure, suggesting that the industry might not be prepared for such developments.
Fang noted that while a spot Bitcoin ETF could attract more institutional investments, he doubted whether investors were prepared to handle the volatility of Bitcoin.
He also questioned the industry’s readiness to continue building more applications on top of Bitcoin, emphasizing the need for a stable infrastructure to support these endeavors.
In conclusion, Ripple’s CEO Brad Garlinghouse’s comments underscore the challenges faced by cryptocurrency startups in the U.S. due to regulatory uncertainty, while also highlighting the need for responsible regulation and a stable infrastructure in the crypto space.
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