Ripple’s CEO says the U.S. government is still hostile toward crypto despite the cryptocurrency firm’s victory against the U.S. Securities and Exchange Commission (SEC). “Until that changes, the banks in the United States are not going to engage meaningfully,” he warned, adding: “I don’t think the window has passed for the U.S. to be a leader. But I think every day that goes by, these other markets, they want the entrepreneurs there, they want growth.”
U.S. Government’s Crypto Stance
Ripple CEO Brad Garlinghouse discussed the U.S. government’s crypto stance at the DC Fintech Week conference on Wednesday. Ripple recently won several legal battles against the U.S. Securities and Exchange Commission (SEC).
Emphasizing that certain U.S. banks are still cautious about embracing cryptocurrencies even after Ripple’s legal victory against the SEC, Garlinghouse said:
They’re like, ‘Look, even though you won the case, the United States government is still hostile towards crypto, the OCC [Office of the Comptroller of the Currency] is hostile towards crypto.’ And until that changes, the banks in the United States are not going to engage meaningfully.
The Ripple executive asserted that the SEC’s stance on cryptocurrencies, particularly Chair Gary Gensler’s view of crypto as the “Wild West,” is influenced more by a political agenda than well-defined regulatory policies. He underscored that this approach is hindering the crypto industry’s advancement in the United States.
Gensler also recently explained that he is taking a litigation-heavy approach to regulating the crypto industry because crypto is an industry that is rife with fraud, abuse, and misconduct. He warned this week that anyone wanting to be in crypto must “do it within the law.”
Noting that the U.S. has displayed a hostile stance towards cryptocurrencies, the Ripple boss pointed out that other nations are welcoming companies and investments in the crypto sector with clearer regulations. This includes the U.K. which reaffirmed earlier this month its commitment to establishing itself as a global cryptocurrency hub.
While cautioning that the U.S. is putting its early lead at risk and losing its share of the crypto market, Garlinghouse believes that America could still lead in the crypto space. He opined:
I don’t think the window has passed for the U.S. to be a leader. But I think every day that goes by, these other markets, they want the entrepreneurs there, they want growth.
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