US – A Challenging Terrain for Crypto Startups
Ripple CEO Brad Garlinghouse has been outspoken about the inhospitable environment the United States currently presents for crypto startups. In a recent panel discussion at Token 2049 in Singapore, he noted that the U.S. seems to lag behind other nations in terms of progressive crypto policies.
Call to Adopt “Smart” Crypto Policies
Garlinghouse emphasized the necessity for the U.S. to look towards countries like Singapore, the United Kingdom, the UAE, and Switzerland, where “smart” crypto policies are nurturing innovation while securing consumer protection. The Ripple CEO remarked that the ongoing legal tussles with the Securities and Exchange Commission (SEC) indicate a kind of political warfare, deterring the growth of crypto enterprises in the US.
SEC’s Lawsuit Strategy: A Failing Approach?
Highlighting recent court victories for Ripple and Grayscale against the SEC, Garlinghouse suggests a changing tide in the industry’s favor. He perceives these outcomes as signs of evolving perspectives, which might, over time, offer more lucidity to crypto exchanges and custody providers operating in the US.
OKX President Urges Focus on Product and Technology
OKX president Hong Fang, while acknowledging the politics at play, advised crypto firms to concentrate on facets within their control, such as product development and technological advancements. The emphasis, according to Fang, should be on fostering responsible regulation and steering clear of the political whirlpool.
Skepticism Surrounding the Prospective Bitcoin ETF
The discussion also touched upon the prospects of a spot Bitcoin ETF, with Fang expressing reservations about the industry’s preparedness to handle the implications of such a development, especially concerning custody solutions. He noted the budding nature of the blockchain infrastructure, questioning its readiness to support an influx of institutional investments spurred by a potential Bitcoin ETF.
Closing Remarks
While the Ripple CEO sees a tough road ahead for crypto startups in the US, he remains hopeful about branching out to more progressive jurisdictions that understand the blockchain technology’s potential benefits. The industry is at a pivotal point, with leaders urging focus on technology and responsible regulation, potentially steering towards a future with more friendly regulatory environments globally. The ongoing discussions reflect a vibrant yet cautious optimism, hinting at a seminal period in the crypto landscape marked by groundbreaking evolutions and dynamic shifts in regulatory perspectives.
