Ripple Labs CEO Brad Garlinghouse is optimistic about the future of crypto in the US, regardless of the outcome of the upcoming election. He believes that the US will become more crypto-friendly and innovative, no matter which political party wins. Despite this optimism, he advises startups to incorporate outside the US due to the current regulatory environment, with roughly 95% of Ripple’s business now taking place outside the country.
Ripple is one of the crypto firms currently under scrutiny by the SEC for allegedly offering unregistered securities through its XRP token. A partial summary judgment in July 2023 ruled that Ripple’s sales of XRP to institutional investors violated securities laws, but other distributions of XRP did not constitute securities offerings. Both the SEC and Ripple have filed notices of appeal to the court regarding this ruling.
Garlinghouse views the current regulatory challenges for crypto in the US as a “speed bump” that will be overcome in the future. He is confident in the industry’s growth prospects and believes that doubters are not paying attention. Garlinghouse also sees a potential political reset on the horizon, with both parties showing increased openness to crypto. While he has not officially endorsed a presidential candidate, he noted President Trump’s pro-crypto stance and Vice President Harris’ constructive statements on the industry.
Despite his optimism for the future, Garlinghouse criticized the Biden administration for its hostile stance towards crypto businesses. He pointed to actions taken by regulatory bodies such as the SEC, the Office of the Comptroller of the Currency, and the Treasury as evidence of this hostility. However, he remains hopeful for a reset in the political landscape, anticipating forward progress regardless of the election outcome.
Garlinghouse recently endorsed John Deaton, an attorney challenging Senator Elizabeth Warren, a vocal critic of the crypto industry. He highlighted Ripple’s significant contributions to pro-crypto political action committees, including a $45 million donation to the Fairshake PAC. Co-founder Chris Larsen also contributed $11 million to Vice President Harris’ campaign, emphasizing the company’s commitment to supporting crypto-friendly politicians.
In conclusion, Brad Garlinghouse remains optimistic about the future of crypto in the US and believes that the industry will overcome current regulatory challenges. He anticipates a more pro-crypto and innovation-friendly Congress in the future, regardless of the election outcome. While critical of the Biden administration’s stance on crypto, he sees a potential reset on the horizon and looks forward to progress in the regulatory environment.
