Brad Garlinghouse, the CEO of Ripple, has stated that the United States is currently one of the worst places in the world to launch a cryptocurrency startup due to the ongoing legal battle between Ripple and US securities regulators. Speaking at the Token 2049 conference in Singapore On September 12, Garlinghouse encouraged entrepreneurs to consider countries like Singapore, the United Kingdom, the United Arab Emirates, and Switzerland for crypto ventures.
Garlinghouse specifically criticized the US Securities and Exchange Commission (SEC) for what he sees as a politically motivated war on the crypto industry through lawsuits. He believes that the litigation strategy employed by the SEC is ineffective and argued that recent legal victories by Ripple and Grayscale against the SEC may signal a shift in favor of the crypto industry within the courts.
While these court outcomes do not establish legally binding precedents, Garlinghouse noted that they offer more clarity for crypto exchanges and custody providers operating in the United States, at least for the time being.
Hong Fang, the President of OKX, acknowledged the political dynamics at play but emphasized the importance of crypto companies focusing on what they can control, such as product development and technology. He also expressed reservations about whether the industry is prepared for custody solutions centered around potential Bitcoin Exchange Traded Funds (ETFs), as much of the blockchain-based infrastructure has not yet been thoroughly tested by the masses.
Despite the challenges posed by the US regulatory environment, Garlinghouse mentioned that Ripple is expanding its services to countries with more progressive stances on blockchain and cryptocurrencies. While he believes that spot Bitcoin ETFs will drive more institutional investments, Fang raised concerns about whether the industry is fully prepared for the associated risks and infrastructure demands.
