Ripple’s CEO Brad Garlinghouse recently spoke out about the continuing reluctance of American financial institutions to fully adopt cryptocurrencies such as XRP, despite Ripple’s recent legal triumph over the SEC. At the D.C. Fintech Week conference, Garlinghouse attributed this wariness to the United States’ cautious stance on cryptocurrencies. He emphasized that even after Ripple’s legal victory, key financial players await more definitive regulatory guidance from U.S. authorities before committing to cryptocurrency ventures.
Highlighting the crypto industry’s perception of hostility from regulatory bodies like the Options Clearing Corporation (OCC), Garlinghouse expressed his belief that a change in this attitude would likely lead to increased cryptocurrency engagement by U.S. banks. Yassin Mobarak, the founder of Dizercapital, shared similar views, indicating that a shift in the U.S. administration might be pivotal for widespread cryptocurrency adoption in the country.
Despite a significant court ruling in July, where a U.S. federal judge declared XRP as not a security, the U.S. remains cautious in its approach to cryptocurrencies, contrasting with other nations advancing in this arena through clear regulations and investment growth in crypto.
Garlinghouse raised concerns about the U.S. needing to become a leader in the burgeoning global cryptocurrency market. He noted that other international markets are becoming more appealing to crypto entrepreneurs and investors as time progresses. However, he remains optimistic about the U.S. developing a supportive regulatory framework for cryptocurrencies in the coming decade.
In light of these regulatory challenges, Ripple is focusing on expanding its operations outside the U.S. Garlinghouse questioned the practicality of scaling Ripples U.S. operations, given the current regulatory uncertainties. He suggested the company might find more favorable conditions for its activities abroad.