Ripple CEO Brad Garlinghouse speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, USA.
Mike Black | Reuters
Ripple Labs CEO Brad Garlinghouse has always been skeptical of cryptocurrency regulation in the United States, but he is very optimistic about the upcoming post-election environment.
He said in the statement: “This is the most important election we have ever experienced, but I also believe that no matter what happens, we will have a Congress that is more pro-cryptocurrency and more pro-innovation than ever before.” Zhou Three talks with CNBC at DC Fintech Week.
Ripple is an established player in the crypto space, in part due to its close ties to the cryptocurrency space Ripple Token operates a global payment business, with banks and financial institutions as its main customers. About 95% of its business occurs outside the United States, which Garlinghouse said is partly a reflection of Washington’s contentious environment.
In 2020, the SEC sued Ripple, but the company scored a major victory for the industry last year when a judge ruled against XRP Not a security When sold to retail investors on exchanges.
On Wednesday, Garlinghouse offered one piece of advice to fintech startups in this changing era: “Incorporate outside the United States.”
Still, he’s optimistic about the long-term direction of the industry.
“Anyone who doesn’t believe we’re going to end up in a better place no matter what is not paying attention…(If) in 10 years we look back at how America got it wrong over the years…that’s going to be A speed bump, the industry will continue to thrive.
The coming “reset”
Ripple has donated at least $45 million to the Fairshake pro-crypto political action committee. Co-founder Chris Larsen recently donated $11 million to Vice President Kamala Harris’ campaign. Garlinghouse noted that he intentionally wore a purple tie on Wednesday.
“Obviously, Trump came out very aggressively early on in a pro-crypto way and said he was the crypto president,” Garlinghouse said. “Harris’ team was more nuanced. This week, they publicly spoke out some of the most constructive remarks.”
“Kamala Harris comes from Silicon Valley, and she’s been a technology professional for many years,” he added. “She’s been relatively quiet on the topic, but I think we’re going to see a reset no matter what happens.”
As a result of the contrast, sentiment in the crypto industry has become increasingly partisan — even though it has previously praised growing bipartisan support for crypto issues in Congress. Many pro-crypto voters worry that the Harris campaign will continue its “attack” on cryptocurrencies, as Garlinghouse put it.
“No matter what happens, we are going to be left with the failed approach of the Biden administration,” he said. “This is an attack, not just on the SEC. The (Office of the Comptroller of the Currency) is hostile to cryptocurrencies; the Treasury Department is also Hostile to cryptocurrencies.”
He emphasized that banks are increasingly reluctant to cooperate with cryptocurrency companies, which many in the industry are calling “Operation Chokepoint 2.0.” The term refers to an Obama-era program called Operation Choke Point that prevented banks from servicing risky but legitimate businesses, such as payday lenders and online gambling operations.
“This is a hostile administration and no matter what happens in the next election, we’re going to have a reset,” Garlinghouse said. “We can talk about the size of the reset, there’s a lot of disagreement about that… We’ll see Moving forward, I’m certainly looking forward to that.”
Although Garlinghouse has not publicly endorsed either presidential candidate, he said this week he supported attorney John Deaton, who is seeking to unseat Sen. Elizabeth Warren (D-Mass.). Warren has been critical of the crypto industry, seeking additional supervision space.
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