Ripple Labs CEO, Brad Garlinghouse, Regrets Delayed Communication with US Regulators

Brad Garlinghouse, CEO of Ripple Labs, recently expressed regret over not engaging with US regulators sooner regarding crypto trading. Ripple’s XRP is currently embroiled in a legal battle with the Securities and Exchange Commission (SEC).

During an interview at DC Fintech Week on October 24, Garlinghouse revealed that he has made significantly more trips to Washington, DC in recent years due to the ongoing legal issues between XRP and the SEC. He emphasized that earlier communication with regulators might have helped avoid the current situation.

“I look back on that and I regret that. I think we made a mistake by not leaning in earlier. And we’re trying to make up for lost time to some degree,” said Garlinghouse.

Earlier this year, the SEC won a lawsuit against Ripple Labs, accusing the company of conducting unwarranted sales of XRP tokens worth $1.3 billion. The SEC argued that XRP should be classified as an unregistered security and alleged that it created profit expectations for investors. Ripple plans to file a cross-appeal to challenge the ruling on institutional sales, setting the stage for a potentially lengthy legal process that could impact the US crypto landscape.

US Crypto Regulations Lagging Behind

Garlinghouse also commented on the US falling behind other countries in terms of crypto adoption and regulations. He mentioned ongoing discussions with regulators and central banks in countries like Japan, the United Kingdom, Singapore, the United Arab Emirates, and Brazil, which he believes are ahead of the US in crypto regulations.

He attributed the slow adoption of crypto in the US to misinformation, particularly criticizing SEC Chair Gary Gensler’s antagonistic stance toward the crypto industry. Under Gensler’s leadership, the SEC has taken legal actions against several crypto companies and executives, including Coinbase and Binance founder Changpeng Zhao.

“The US is a laggard and for reasons that don’t really make sense. I think it does get back to this kind of misinformation that it’s been, I think the Gensler reign of terror mixed with Elizabeth Warren spreading misinformation saying crypto’s the Bogeyman, and it’s just not the case,” said Garlinghouse.

Global Crypto Adoption Insights

According to the Global Crypto Adoption Index report for 2024 by Chainalysis, the United States is ranked fourth in overall crypto adoption, trailing behind Indonesia, Nigeria, and India.

“Crypto activity increased across countries of all income brackets, with a pullback in high income countries since the beginning of 2024,” Chainalysis noted in its report.

For more insights into the global crypto landscape, stay updated with the latest news.

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