Brad Garlinghouse envisions a more supportive climate for cryptocurrencies regardless of election results.
Ripple CEO’s Optimism for Crypto
Ripple Labs CEO Brad Garlinghouse remains optimistic about the future of cryptocurrency in the U.S. He believes that a more favorable regulatory environment will emerge regardless of the political party that wins the upcoming election. During DC Fintech Week, Garlinghouse expressed his views on how this election could reshape the landscape for crypto. “This is the most important election we’ve had,” he stated. “But I also believe no matter what happens, we’re going to have a more pro-crypto, more pro-innovation Congress than we’ve ever had.”
Startups Should Consider Global Operations
Despite his positive outlook, Garlinghouse advised crypto startups to consider establishing their operations outside the U.S. He mentioned that approximately 95% of Ripple’s business now occurs internationally. Ripple is currently under scrutiny from the U.S. Securities and Exchange Commission (SEC), which has raised concerns about the legality of its XRP token.
In December 2020, the SEC filed a lawsuit against Ripple, accusing it of selling unregistered securities. A partial summary judgment in July 2023 ruled that Ripple’s sales to institutional investors constituted investment contracts, violating securities laws. However, the court clarified that Ripple’s programmatic sales did not fit the criteria for securities offerings.
Ongoing Legal Battles
As the legal situation unfolds, both Ripple and the SEC have filed notices of appeal to the court. Garlinghouse views the current regulatory challenges as a temporary “speed bump” in the industry’s growth. He stated, “Anyone doubting the industry’s eventual growth is not paying attention.” This optimistic view reflects a belief that a political reset is on the horizon, regardless of the upcoming election’s outcome.
Bipartisan Support for Crypto
Garlinghouse also noted that both major political parties in the U.S. are becoming increasingly supportive of cryptocurrencies. Although he hasn’t officially endorsed any presidential candidates, he highlighted former President Donald Trump’s strong pro-crypto stance.
Trump came out early and aggressively in a pro-crypto way and said he’s the crypto president.
— Brad Garlinghouse, Ripple Labs CEO
In contrast, Vice President Kamala Harris has taken a more nuanced but still constructive position regarding cryptocurrencies. Garlinghouse remarked on her recent statements, which have shown support for technology and innovation, despite her relative silence on crypto specifically. He added, “Team Harris has been more nuanced, but they had some of the most constructive things they’ve said publicly this week.”
Significant Contributions to Crypto Advocacy
Garlinghouse’s commitment to the crypto community is also evident in Ripple’s financial support for pro-crypto political action committees. Ripple has contributed $45 million to the Fairshake PAC. Recently, Ripple co-founder Chris Larsen donated $11 million to Harris’ campaign, emphasizing the company’s dedication to influencing positive policy changes.
Critique of the Current Administration
While optimistic about a potential shift in leadership, Garlinghouse criticized the current Biden administration for creating a challenging environment for crypto businesses. He pointed to actions taken by the SEC, the Office of the Comptroller of the Currency, and the Treasury as contributing to this hostile atmosphere. He stated, “That is a hostile administration. No matter what happens in this next election, we will have a reset.”
Looking Ahead to Change
Garlinghouse believes that regardless of who wins the election, the cryptocurrency industry will benefit from a renewed focus on innovation and progress. He expressed his eagerness for the forthcoming political changes, stating, “We’re going to see forward progress, and I certainly am looking forward to that.” This perspective suggests that the future of cryptocurrency in the U.S. could be marked by greater support and understanding.
Disclaimer:
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