- In a recent discussion, Ripple CEO Brad Garlinghouse criticized the U.S. Securities and Exchange Commission (SEC).
- Garlinghouse’s remarks highlighted a potential move of Ripple’s primary operations away from the U.S.
- He emphasized how U.S. regulatory policies have become a partisan issue, affecting innovation.
Ripple CEO Brad Garlinghouse criticizes the SEC and hints at a possible exit from the U.S. market due to regulatory challenges.
Ripple CEO Brad Garlinghouse Criticizes US SEC Over Anti-Innovation Stance
In a recent conference, Ripple CEO Brad Garlinghouse expressed disapproval of the U.S. Securities and Exchange Commission’s (SEC) regulatory approach. Referring to the SEC as “luddites,” Garlinghouse voiced concerns over what he perceives as their anti-innovation stance. This perspective is causing Ripple to reconsider its American market operations.
Ripple’s Move Away from U.S. Market
According to Garlinghouse, the company’s focus has shifted towards international markets owing to regulatory uncertainties in the U.S. He noted that a significant portion of Ripple’s growth and customer base now originates outside the U.S. During the last couple of years, especially following the SEC lawsuit, Ripple has experienced more than 95% of its transaction volume from non-U.S. clients.
Ripple CEO Discusses Employment and Market Shift
Garlinghouse revealed that about 75% of Ripple’s hires in the past two years have been outside the U.S. He questioned the rationale behind recruiting locally when the primary market is increasingly abroad. This shift highlights the necessity for Ripple to operate closer to its global customer base to better align with its sales and operational strategies.
Regulatory Challenges Lead to Job Migration
Garlinghouse pointed out the irony of high-salaried jobs migrating out of the U.S. due to regulatory hurdles. He mentioned that regions like Japan, the UAE, Singapore, and the European Union provide more regulatory clarity and a welcoming atmosphere for blockchain innovations. In these countries, policies are clearer, allowing businesses like Ripple to thrive and innovate without fears of sudden legal challenges.
Political Dynamics and Crypto Regulation
Delving into the political landscape, Garlinghouse criticized the partisanship affecting U.S. crypto policies. He noted the surprising aspect of technology becoming a partisan issue, with certain members of Congress, such as Senator Elizabeth Warren, adopting adversarial positions towards the crypto sector. Garlinghouse articulated how this divide creates an unstable and unpredictable environment, further deterring innovation and investment.
Future Outlook and Industry Sentiment
Despite these hurdles, Garlinghouse remains hopeful about the future. He believes that ongoing efforts to create clear crypto regulations will eventually gain bipartisan support. He commended certain political leaders who are working towards resolving these issues and urged for a more unified approach.
Conclusion
In summary, Ripple CEO Brad Garlinghouse’s latest remarks underscore significant concerns regarding the U.S. regulatory landscape for cryptocurrencies. The SEC’s stringent policies have not only driven Ripple to expand internationally but also sparked broader discussions about the need for clear and supportive regulations in the U.S. The company’s shift towards foreign markets and the ongoing political debates mark a pivotal moment for the future of the cryptocurrency industry in the U.S.
