The lack of clear regulation of the crypto industry in the United States threatens to push companies abroad, which would negatively affect user protection. This view was voiced in an interview with Bloomberg by CEO Ripple Brad Garlinghouse.
.@KaileyLeinz asked “If the US doesn’t get its act together…is all of this [crypto] going offshore?”
Me: “It already is.”
I’ve said it before, and I’ll say it again — crypto moving offshore is not good for American innovation. Period, full stop. https://t.co/OWz8uoRHrI
— Brad Garlinghouse (@bgarlinghouse) March 2, 2023
Garlinghouse stressed the importance of enacting clear, well-structured regulation of cryptocurrencies in the United States. In his view, this would spur the growth of the industry.
As an example of the law’s imperfections, he cited Ripple’s litigation with the U.S. Securities and Exchange Commission (SEC).
According to him, attempts by the SEC to regulate the industry through enforcement show how far the United States lags behind other countries in building a clear regulatory framework.
“If [politicians and regulators] in the United States do not come together and act faster, all crypto companies will go offshore. … This is already happening,” Garlinghouse said.
According to him, the outflow of crypto industry participants from the country puts users at risk, who are left unprotected against scammers.
“…as a result, consumers suffer because they lack the protections that U.S. regulatory frameworks can provide,” he says.
Garlinghouse stressed the need for the United States to catch up with other countries in cryptocurrency regulation, otherwise it risks losing the innovations and the economic benefits of a promising sector.
Earlier Garlinghouse positively assessed the course of the litigation with the SEC, allowing its conclusion by the end of 2022.
Partner at the law firm Davis Polk and former SEC official Joseph Hall said that the Commission had high chances of losing on the merits of the case. However, he expressed doubts about a swift end to the proceedings.
In March 2023, Coinbase CEO Brian Armstrong said that the United States lags behind in drafting cryptocurrency legislation, while the rest of the world is already using digital assets.