Brad Garlingouse, CEO of Ripple (XRP), praises countries such as Dubai, Australia and the UK for progressive cryptocurrency regulation initiatives. He gives the U.S. a negative report card.
The wait for a verdict in arguably the most important U.S. crypto case continues, with the Securities and Exchange Commission accusing Ripple of selling XRP in 2014 without necessary approval. While the court in New York is fine-tuning a verdict, Ripple CEO Brad Garlinghouse is turning his attention to overarching issues in the crypto industry. Via Twitter, he cites recent examples from several countries that are working on clear guidelines for regulating Bitcoin and Co. and are thus, in his view, far ahead of the US:
- Dubai, according to Garlinghouse, recently published a detailed rulebook that clarifies, among other things, how crypto may be advertised and what must be observed when issuing cryptocurrencies. Ripple already maintains a regional office in Dubai, and other market participants such as crypto exchange Binance also feel they are in good hands in the city-state.
- In Australia, the government has begun to reform the regulatory framework for the crypto industry, according to Garlinghouse. Strengthened consumer protection is to play a role, as are clear licensing guidelines. At present, he said, citizens are being called upon to put forward their arguments. After that, Australia wants to legislate the crypto regulatory reforms, he said.
- In the case of the United Kingdom, Garlinghouse sees the new government as aiming to create a legal framework for the crypto industry that allows companies to innovate while ensuring financial stability. This could enable London to become the global center for the crypto industry, as it has previously aspired to be.
- In South Korea, authorities recently issued handouts on how security tokens differ from those coins that serve as a means of payment, Garlinghouse writes. This would then lead to different regulations.
Garlinghouse stresses he could continue the list with Brazil, for example, where lawmakers are also drafting new guidelines for the crypto industry. The bottom line is that the Ripple CEO sees countries at an advantage where governments and regulators are fulfilling their leadership roles, paving the ground for successful crypto economies. In the U.S., however, those fundamentals are not being met, Garlinghouse says. However, Garlinghouse did not address the lawsuit between the SEC and Ripple over XRP in his round robin.
Conclusion: Is the US really putting the brakes on the crypto sector?
The legal dispute between the U.S. Securities and Exchange Commission and Ripple is not only trend-setting for XRP, but could also have an impact on other crytocurrencies and companies. In this respect, Garlinghouse’s reference to practices in other states has found a point to applaud in the crypto scene. In fact, the SEC has taken an exceedingly conservative stance on crypto so far, preferring to overregulate in the interest of consumer protection rather than let innovation run its course. But overall, the U.S. lacks a clear legal line to guide the crypto industry. It is therefore understandable that Garlinghouse is not only calling on the U.S. to accommodate the growth industry of crypto with competent laws instead of sleeping through the developments in the interest of Ripple and XRP.