Following a legal battle with the SEC, Ripple CEO says he "would not encourage <crypto enthusiasts> to start a company" in the US.
Ripple CEO Brad Garlinghouse has openly stated that the United States is not an ideal location for new cryptocurrency startups. This comes as Ripple itself is embroiled in a legal battle with the US Securities and Exchange Commission (SEC).
During the Token 2049 event in Singapore on September 12th, Garlinghouse was critical of the SEC's approach to the crypto industry, arguing that the regulator is waging a political war through its litigations.
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The only country I would not encourage you to start a company right now is in the US.
Garlinghouse urged the United States to follow the lead of countries like Singapore, the UK, the UAE, and Switzerland, which have enacted policies that foster crypto innovation while ensuring consumer safety.
The Ripple CEO believes the tides are turning in favor of the industry, citing recent legal victories for Ripple and Grayscale over the SEC as indicative of a changing judicial perspective.
I think you’re seeing the momentum shift. It used to be that judges generally leaned towards believing the SEC was always in the right.
While acknowledging that these rulings aren't legally binding, he emphasized that they at least provide some temporary clarity for crypto firms operating within the US.
OKX President Hong Fang weighed in on the situation, urging crypto companies to focus on factors within their control.
We can only control what we can control, which is to build the right product and to focus on the technology, and to support responsible regulation.
Despite the regulatory challenges in the United States, Garlinghouse affirmed that Ripple is looking to expand its services in countries with a more progressive stance on blockchain technology.
The comments by Brad Garlinghouse highlight the growing sentiment among industry leaders that the United States is becoming an increasingly tricky environment for cryptocurrency startups. As legal battles with regulators like the SEC continue, companies are urged to proceed with caution or consider other more welcoming jurisdictions for their operations.
