Ripple CEO optimistic about crypto post-election, regardless of outcome
Ripple Labs CEO Brad Garlinghouse believes the US will become more crypto-friendly regardless of which political party wins the upcoming election, CNBC reported on Oct. 24.
Garlinghouse said during DC Fintech Week:
This is the most important election weve had, but I also believe no matter what happens, were going to have a more pro-crypto, more pro-innovation Congress than weve ever had.
Despite the optimism, he advised startups to incorporate outside the US and said that roughly 95% of Ripples business now takes place outside the country.
Ripple is one of the crypto firms under the US Securities and Exchange Commission (SEC) scrutiny. In December 2020, the SEC filed a lawsuit accusing the company of offering unregistered securities through its XRP token.
A July 2023 partial summary judgment ruled that Ripples sales of XRP to institutional investors configured investment contracts, violating securities laws as a result.
Yet, the court understood that Ripples programmatic sales and other distributions of XRP did not meet the criteria for investment contracts under the Supreme Courts Howey test and, thus, did not represent securities offerings.
As of now, both the SEC and Ripple filed notices of appeal to the court.
A speed bump
Garlinghouse also believes that the current shaky regulatory environment for crypto in the US will be seen as a speed bump in the future. He added that anyone doubting the industrys eventual growth is not paying attention.
Garlinghouse is also confident about the coming political reset, regardless of the election outcome, as both parties have shown increased openness to crypto.
Although Garlinghouse hasnt officially endorsed a presidential candidate, he noted that former President Donald Trump has been openly pro-crypto, while Vice President Kamala Harris stance has been more nuanced but constructive, particularly in recent statements.
He said:
Trump came out early and aggressively in a pro-crypto way and said hes the crypto president. Team Harris has been more nuanced, but they had some of the most constructive things theyve said publicly this week.
Additionally, he highlighted that Harris background in Silicon Valley makes her a technology supporter despite her silence on crypto. Despite not backing a presidential candidate, Garlinghouse recently endorsed John Deaton, an attorney challenging Senator Elizabeth Warren (D-Mass.), a vocal critic of the crypto industry.
Garlinghouse also cited the significant contributions Ripple has made to pro-crypto political action committees, including a $45 million donation to the Fairshake PAC. Ripple co-founder Chris Larsen recently contributed $11 million to Harris campaign.
Political reset
Albeit optimistic about a potential Harris term, Garlinghouse criticized the Biden administration for the current hostile environment for crypto businesses, citing actions by the SEC, the Office of the Comptroller of the Currency, and the Treasury.
He said:
That is a hostile administration. No matter what happens in this next election, we will have a reset. We can debate the magnitude of that reset, and theres lots of disagreement about that Were going to see forward progress, and I certainly am looking forward to that.
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