Ripple CEO Regrets Not Engaging With U.S. Regulators Sooner
Date: 2024-10-24 Author: Oliver Abernathy Categories: BUSINESS
In an interview with CNBC at the DC Fintech Week conference on October 24, Garlinghouse noted that he has had to travel to Washington more often in the past few years than ever before due to the ongoing dispute between Ripple and the SEC. He emphasized that in hindsight, he regrets that the team did not engage with regulators sooner, which could have helped avoid the conflict.
“I look back on this period and wish we had been more proactive sooner. It was a mistake, and now we’re trying to catch up,” Garlinghouse said.
Earlier this year, the SEC won a lawsuit against Ripple Labs, accusing the company of selling $1.3 billion worth of XRP tokens without proper registration. According to the SEC, the token was offered as an unregistered security, creating expectations of profit for investors. Ripple is preparing a counterclaim to challenge the ruling regarding institutional sales, and both sides are preparing for a lengthy process that could seriously affect the future of cryptocurrencies in the United States.
Garlinghouse also noted that the United States is noticeably lagging behind other countries in terms of regulating and accepting cryptocurrencies. He said that he is in dialogue with regulators and central banks of countries that, in his opinion, have made significant progress in crypto regulation. Among these countries, he singled out Japan, the United Kingdom, Singapore, the United Arab Emirates, and Brazil.
Garlinghouse named misinformation spread by the antagonist position of SEC Chairman Gary Gensler as the main reason for the US lagging behind. According to him, Gensler is leading a campaign against cryptocurrencies, which includes lawsuits against large crypto companies such as Coinbase and Binance.
"The U.S. is lagging far behind, and there's no logical reason for it. It's, in my opinion, a result of the misinformation that Gensler and politicians like Elizabeth Warren are pushing, spreading fears about cryptocurrency that are not true," Garlinghouse added.
According to Chainalysis' 2024 Global Crypto Adoption Report, the U.S. ranks fourth overall, behind Indonesia, Nigeria, and India. The report also notes that crypto activity has grown globally, despite a decline in high-income countries since the start of 2024.
