In an interview, Ripple CEO Brad Garlinghouse advised crypto startups to avoid the United States due to regulatory uncertainties. Garlinghouse suggested that regulatory clarity is crucial for fostering innovation and growth in the cryptocurrency industry, and the current environment in the US is not conducive to that. This advice comes amid increasing scrutiny by regulators towards digital currencies and their operations.
The CEO of Ripple Labs Urges Crypto Startups to Avoid the US
Brad Garlinghouse, the CEO of financial technology company Ripple Labs, has advised cryptocurrency startups to steer clear of the United States. According to Garlinghouse, the US is currently one of the worst places to launch digital asset operations due to a lack of clear crypto regulations.
During a panel discussion at TOKEN2049, an annual crypto event held in Singapore, Garlinghouse expressed his opinion alongside other industry leaders, including Hong Fang, the president of crypto exchange OKX.
Ripple CEO Encourages US to Learn from Other Nations
Not only did Garlinghouse urge crypto startups to avoid the US, but he also called on the country to take inspiration from nations such as the United Kingdom, Singapore, and the United Arab Emirates. These countries have implemented clear rules that encourage innovation and protect investors.
Garlinghouse placed the blame on the US Securities and Exchange Commission (SEC) for creating an unfavorable crypto environment. He accused the regulator of instigating a political war with the industry through its lawsuits.
This year, the SEC has filed lawsuits and imposed multimillion-dollar settlements against various digital asset platforms, including Binance, Coinbase, and Kraken. The agency has also entered into ongoing legal disputes with Ripple Labs. In these cases, the SEC has classified many crypto tokens as securities and demanded registration.
However, Garlinghouse believes that the Commission’s lawsuit strategy is losing effectiveness as the American judiciary system starts to favor the crypto industry. Recent court victories for Ripple and Grayscale against the SEC demonstrate this shift.
Ripple’s Focus on Offshore Regions
Hong Fang echoed Garlinghouse’s sentiments and encouraged crypto firms to concentrate on what they can control: building the right technology and product and supporting responsible regulation.
Even though the recent court victories provide some level of clarity for the US crypto industry, Ripple has decided to shift its focus to offshore regions. The company has announced that 80% of its staff hiring this year will be outside the US.