U.S. Should Embrace Crypto Regulations, Says Ripple CEO

Brad Garlinghouse berated the United States. The Securities and Exchange Commission's (SEC) enforcement-based strategy to regulating the cryptocurrency market.

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The U.S. lags behind numerous nations with pro-crypto policies, according to Ripple (XRP) CEO Brad Garlinghouse, because of its staunch opposition to the sector.

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Cryptocurrency regulation in the US is slow.

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Garlinghouse lamented that the U.S. crypto rules were limiting advancements in the sector in a Trade Algo interview. He stated:

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The unfortunate truth is that the United States has already fallen behind nations like Australia, the United Kingdom, Japan, Singapore, Switzerland, and others who have taken the time and care to formulate precise rules.

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His viewpoint is in line with those of other crypto stakeholders who have claimed that the U.S. strategy is bad for the sector.

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The CEO pointed out that US officials are approaching cryptocurrencies differently than they did with the internet a few decades ago. At the time, the United States took the lead in developing the internet's regulatory framework, fostering an atmosphere that attracted investors and entrepreneurs and considerably boosted the nation's economy.

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"Offshoring of cryptocurrency is bad for American innovation."

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Nonetheless, the nation's stance on cryptocurrencies is driving a number of entrepreneurs elsewhere. Consumers lose, he continued, because offshore regulatory standards cannot ensure the same level of robust consumer protection that the United States can.

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He believed that a strong regulatory framework should begin with a clear grasp of consumer protection and the fact that not all digital assets would be considered securities.

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The Ripple CEO addressed numerous recent regulatory changes that several nations had implemented on February 9. He stated that these changes were "energizing" and what the United States "desperately needs."

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Garlinghouse rebukes the SEC

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Garlinghouse, meanwhile, was critical of America. The Securities and Exchange Commission's (SEC) enforcement-based strategy to regulating the cryptocurrency market. He asserts that the SEC behaves like a guy who uses a hammer and perceives everything as a nail.

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According to Garlinghouse, the legal dispute between the financial watchdog and the cryptocurrency payment provider will be crucial to the nation's regulation of the industry. The action, he continued, demonstrates the SEC's aggressive stance toward the cryptocurrency sector.

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The financial agency has taken a number of enforcement measures against cryptocurrency firms that it claims violated federal securities law after the SEC launched its lawsuit against Ripple in 2022.