Ripple Labs CEO Brad Garlinghouse believes the U.S. will become more crypto-friendly no matter which party wins the next election, CNBC reported on October 24. It was reported on the day.
Garlinghouse said during DC FinTech Week:
“This is the most important election ever, but I believe that no matter what happens, we will have a Congress that is more pro-crypto, more pro-innovation than ever before.”
Despite his optimism, he advised startups to “incorporate outside the United States,” noting that about 95% of Ripple's business is currently done outside the country.
Ripple is one of the crypto companies under the supervision of the US Securities and Exchange Commission (SEC). In December 2020, the SEC filed a lawsuit against the company for offering unregistered securities through its XRP token.
A partial summary judgment in July 2023 ruled that Ripple's sales of XRP to institutional investors constituted investment contracts and, as a result, violated securities laws.
However, the court understood that Ripple's programmatic sales and other distributions of XRP did not meet the criteria for an investment contract under the Supreme Court's Howey test and therefore did not constitute an offering of securities.
At this time, both the SEC and Ripple have filed notices of appeal with the court.
“Speed Bump”
Garlinghouse also believes that the current unstable regulatory environment for cryptocurrencies in the US will be seen as a “speed bump” in the future. He added that anyone who doubts the industry's eventual growth is “not paying attention.”
Garlinghouse is also confident about the upcoming political “reset” regardless of the election outcome, as both parties have shown openness to cryptocurrencies.
Garlinghouse has not formally endorsed a presidential candidate, but while former President Donald Trump has publicly expressed support for cryptocurrencies, Vice President Kamala Harris' stance has been more pronounced, especially in recent statements. He pointed out that it was subtle but constructive.
he said:
“Mr. Trump took an aggressively pro-crypto stance early on, calling himself the crypto president. Team Harris has a more nuanced view, but in his public remarks this week, He had some of the most constructive things to say.”
Additionally, Harris emphasized that despite her silence on cryptocurrencies, her background in Silicon Valley makes her a supporter of the technology. Although Garlinghouse has not endorsed a presidential candidate, she recently endorsed John Deaton, a lawyer who is challenging Sen. Elizabeth Warren (D-Mass.), a vocal critic of the cryptocurrency industry.
Garlinghouse also noted that Ripple has made significant contributions to pro-crypto political action committees, including a $45 million contribution to FairShake PAC. Ripple co-founder Chris Larsen recently donated $11 million to Harris' campaign.
political reset
While Garlinghouse remains optimistic about Harris' prospects for office, she criticized the Biden administration for the current hostile environment for crypto businesses, citing actions by the SEC, Office of the Comptroller of the Currency, and Treasury Department. .
he said:
“That's a hostile regime. No matter what happens in the next election, we're going to be reset. You can argue about the magnitude of that reset, but it's one of many opinions. There are differences… We'll move forward and I'm certainly looking forward to it.”
