Known for pioneering cryptocurrency XRP, Ripple has been caught in a high-stakes legal tussle with the U.S. Securities and Exchange Commission since last year.
He says a big part of the problem with crypto regulation in the U.S. is not the cryptocurrency players, but the lack of action from the U.S. regulators compared to global peers. The SEC charged Ripple, co-founder Chris Larsen and Garlinghouse with conducting an illegal securities offering that allegedly raised more than $1.3 billion through sales of XRP.
XRP was trading up about 8% on Wednesday morning amid a crypto rebound, and it is up more than 300% year-to-date, but has fallen far from its YTD high during the recent crash in cryptocurrencies. Bitcoin had bounced back from its massive, recent decline and was hovering around $40,000 on Wednesday.
“There’s a misunderstanding of how these technologies can be applied,” Garlinghouse said. “In the United States there has been a lack of regulatory clarity. Other countries, G20 markets, they have invested the time and energy, either through legislation or rulemaking, to provide that clarity and certainty, which allows investors to participate, entrepreneurs to build.”