Chris Larsen, the chairman and co-founder of Ripple Labs, has criticized the cryptocurrency policy of the Biden administration, stating that the US legal system will need to rectify the situation after the government "messed up" its approach.
Larsen, in a recent interview with Bloomberg on September 7, discussed Ripple's partial victory against the SEC in July. He argued that the regulator lost everything important to it in regulating the cryptocurrency industry. He expressed his belief that the United States has mishandled its cryptocurrency and blockchain policy, stating that it's now necessary to turn to the courts, rather than regulators, to provide clarity and allow the industry to thrive.
Larsen also commented on a recent court ruling in favor of Grayscale's application to convert its Bitcoin Trust into an ETF, noting that it sent a clear message to the SEC. According to him, the ruling demonstrated that SEC Chairman Gary Gensler understands the lack of clarity in cryptocurrency laws and utilizes this ambiguity for enforcement purposes, which he believes is inappropriate.
Furthermore, Larsen voiced concerns about the impact of the Biden administration's cryptocurrency policies on San Francisco's status as a blockchain hub. He claimed that these policies have nearly diminished the city's standing as the "blockchain capital of the world" and have driven the industry overseas to places like London, Singapore, and Dubai, where there are clearer rules to protect consumers and encourage innovation. He urged the United States to regain its leadership in promoting a conductive environment for blockchain and cryptocurrency innovation.
