In a thought-provoking session at the Fortune 2024 BrainstormTech conference, Ripple CEO Brad Garlinghouse addressed the division between Republicans and Democrats in the United States when it comes to crypto policy.
Expressing his discontent, Garlinghouse emphasized the need for a unified approach towards innovation, highlighting the importance of crypto technology which supports efficiency and reduces losses.
Ripple CEO Highlights Political Divide
Garlinghouse pointed out the current dynamics where some Republicans are supportive of cryptocurrencies while some Democrats exhibit a more skeptical stance.
Ripple’s CEO echoed the sentiment that reports suggesting President Biden’s potential loss of votes due to an anti-crypto stance, while former President Trump gains support with a pro-crypto position, make logical sense.
Drawing from his first-hand experiences in Washington, Garlinghouse revealed that Democratic leaders are beginning to question their previous approach, acknowledging the need to understand how crypto is being utilized by legitimate actors who strive to comply with regulations. In short, he believes that “the Republicans are playing chess while the Democrats are playing checkers.”
As the CEO of Ripple, which has been engaged in a prolonged legal battle with the US Securities and Exchange Commission (SEC) over the sales of XRP, Garlinghouse candidly shared his thoughts on the challenges faced during this period.
Garlinghouse described being initially apprehensive about Ripple’s future and growth prospects as the US government filed its lawsuit against the company in December 2020.
However, Garlinghouse disclosed that despite the uncertainties, Ripple experienced record-breaking years during the first two years after the lawsuit, largely due to expanding its operations beyond the United States.
Garlinghouse also expressed sadness that a significant portion, reportedly 75%, of Ripple’s customer base and payment volume now comes from outside the United States after the legal dispute with the government, leading to a strategic decision to prioritize non-US hiring.
Garlinghouse Warns Of Historical Consequences
During the conference, Garlinghouse also addressed the lack of regulatory clarity in the US, which has compelled Ripple to seek markets with more defined guidelines, such as Japan, the Middle East, Singapore or the UK.
Ripple’s CEO urged the US SEC to take a leadership role in resolving regulatory challenges surrounding cryptocurrencies, cautioning that the current SEC administration’s approach may be viewed unfavorably in the history books.
Interestingly, the legal dispute between Ripple Labs and the SEC may soon see a resolution. As reported by Bitcoinist on Monday, the SEC has scheduled a closed-door meeting for Thursday, July 18, 2024, potentially signaling a settlement between the two parties.
Initially seeking a nearly $2 billion penalty, the SEC has now reduced its demand to $102.6 million. Ripple, on the other hand, has proposed a penalty cap of $10 million, referencing the resolution of the Terraform Labs case. However, the SEC has countered this proposal, arguing that such a nominal amount would not align with the objective of civil penalty laws.
It remains to be seen what the outcome of this meeting will be, with the possibility of ending a nearly 4-year dispute that has significantly impacted the company’s operations under the SEC’s regulatory jurisdiction, and potentially paving the way for further resolutions of similar disputes with Coinbase or Uniswap Labs.
At the time of writing, XRP is trading at $0.58, up over 9% in 24 hours and recording a substantial 34% price gain in just one week.
Featured image from DALL-E, chart from TradingView.com