US in dire need of Leadership in Crypto Regulation: Garlinghouse

Ripple CEO says the US failed to provide proper guidelines for the industry.
Brad Garlinghouse feels that the US needs leadership in crypto regulations.

The United States emerged as the world’s economic superpower because of focused and derived decisions from lawmakers. All were directed towards a greater goal, but it might not be the world’s cryptocurrency superpower, feels Ripple CEO Brad Garlinghouse, mostly because the nation had failed to provide clear, concise guidelines for the industry.

Stepping back for a moment from what’s happening in the US – just in the last few weeks, the number of positive (or at least headed in the direction of CLARITY) global regulatory developments is energizing!
— Brad Garlinghouse (@bgarlinghouse) February 9, 2023

Garlinghouse firmly believes that the United States needs leadership in crypto regulations right now. Further referring to governments like Australia, the United Arab Emirates, the United Kingdoms, Brazil and South Korea. Acknowledging that these countries provide the industry legislative guidance, something that is lacking by the states. These facilities and regulatory clarity in these countries have benefited Ripple to growth.

Although he also pointed out that the recent developments in the arena are welcoming and could be said to be heading in the direction of clarity. And this has caused global regulatory development to rejoice.

The country’s financial watchdog, the Securities and Exchange Commission, has somewhat of an unfriendly image against the crypto industry. They are doing what they are supposed to do, but the community does not welcome certain decisions and steps.

The high-profile case of Ripple vs. SEC has been going on since 2020, where SEC is saying that XRP is a security and Ripple is arguing against it. Both parties have submitted the required documents and testimonies and are awaiting the result, which is expected to surface in the latter half of 2023.

Recently, the crypto exchange Kraken had to pay a $30 million fine to the SEC for their staking services, accusing them of being against US laws. Now Kraken had to shut its operations in the country and would flourish in other crypto-friendly countries.

It is tricky to achieve a regulatory environment that benefits every concerned party, be it companies, investors, and the government. The major reason is the complexity of the blockchain and cryptocurrency ecosystem. The current scenario in the United States is divided between pro-crypto and anti-crypto lawmakers and authorities.

One thing that can be done here is that all the parties must try to reach a common ground and first decide whether to ban crypto altogether. And if they are not to ban it, efforts must be taken to facilitate its adoption and work should be done on instilling it in almost every aspect of the financial infrastructure.

In many countries that have adopted crypto for various reasons, an intensive study must be conducted on if they are benefiting or struggling with the decision. After this study, gather all the positive points and see how they fit into the United States demographics. Many commendable efforts are being taken for the cause, but still, a lot needs to be done.

Even after massive collapses, bankruptcies, losses and crypto winter, not a single question was raised on the crypto technology itself. It became clearer that the requirement for the regulations is a must; this would not only benefit the industry in eliminating bad players but could provide the world with an exciting and beneficial opportunity.