US Crypto Regulation Lags Behind Other Countries, According to Brad Garlinghouse
Brad Garlinghouse, the CEO of Ripple (XRP), recently commented that the US has fallen behind other countries in terms of pro-crypto regulations due to its strict stance towards the industry.
During a Bloomberg interview on March 2nd, Garlinghouse criticized US crypto regulations, stating that they are hindering innovation in the sector.
He noted that Australia, the UK, Japan, Singapore, Switzerland, and other countries have created clear rules that have allowed entrepreneurs and investors to enter their markets, ultimately benefiting their economies.
Garlinghouse argued that the US regulatory approach towards crypto is different from its approach to the internet a few decades ago when it led regulatory development for the industry, creating a favorable environment for entrepreneurs and investors to prosper.
He noted that crypto moving offshore is detrimental to American innovation and that the offshore regulatory standards do not provide strong consumer protection that the US can guarantee.
Garlinghouse believes that an effective regulatory framework should prioritize consumer protection while acknowledging that not all digital assets qualify as securities.
He criticized the US Securities and Exchange Commission’s regulation-by-enforcement approach to the crypto industry. He stated that the lawsuit between the regulator and Ripple would play a pivotal role in crypto regulation in the country.
Garlinghouse added that the SEC’s aggressive approach towards the crypto industry is demonstrated by its offensive actions against Ripple and other crypto firms accused of breaking federal securities laws since 2022.