Ripple Lab’s CEO, Brad Garlinghouse, has warned that the United States Securities and Exchange Commission’s (SEC) approach to regulation may drive crypto firms out of the country. In a recent interview with Bloomberg, Garlinghouse criticized the SEC’s enforcement-focused regulation and suggested it could make the US less attractive for crypto firms. He noted that there will come many similar cases if the SEC can prevail.
Garlinghouse also highlighted that the US is falling behind many countries such as Singapore, Australia, Japan, the United Kingdom, and Switzerland, which have taken a more thoughtful and considered approach to crypto regulation. He instructed these nations to create clear rules and suggested that the US must follow suit if it wants to remain a blockchain and crypto innovation hub.
The Ripple CEO emphasized the importance of creating explicit protections for customers and ensuring they have the same level of protection as provided by regulatory frameworks. He also emphasized the geopolitical benefits of early adoption, citing the examples of Amazon and Google, based in the US.
In light of these concerns, John Deaton, founder of Crypto Law Lawyer, has called on organizations in active litigation with the SEC to collaborate and develop coordinated strategies. Deaton called it a “war” and suggested that companies must organize and think outside the box to overcome the regulatory challenges.
Kristin Smith, CEO of the Blockchain Association, has also highlighted the need for more industry involvement in the regulatory process. In a recent interview with Bloomberg, Smith emphasized that the crypto regulation process in the US is happening “behind closed doors” and that the industry needs to have a more open and collaborative approach to regulation.
