Ripple CEO Garlinghouse Labels US SEC ‘Luddites’; US Market Exit Ahead?

In a recent discussion at Fortune Brainstorm Tech 2024, Ripple CEO Brad Garlinghouse voiced strong criticism of the U.S. Securities and Exchange Commission (SEC). He has labeled the U.S. SEC “Luddites,” while expressing frustration over the regulatory landscape in the nation. Besides, his recent comments have also sparked discussions over a possible exit from the U.S. market for Ripple.

Ripple CEO Shows Dismay With US Crypto Regulation

Brad Garlinghouse shared his concerns about the U.S. regulatory environment during the interview. He recalled the anxiety Ripple faced when the U.S. government sued the company, noting that many employees left during those early months.

“When the U.S. government sues you, it’s a scary time,” the Ripple CEO said. The firm behind the crypto XRP, based in San Francisco, saw a high turnover of employees during this period, he added.

However, despite these challenges, Ripple experienced record growth in the two years following the lawsuit by expanding its operations outside the U.S. Garlinghouse highlighted that 95% of Ripple’s customers and payment volume are now from non-U.S. markets.

He lamented this shift, explaining that about 75% of Ripple’s hiring in the past two years has been outside the U.S. “Why do you want to hire people here when your market is not here?” Garlinghouse questioned. This strategic decision underscores Ripple’s focus on being closer to its global customer base.

Meanwhile, Garlinghouse pointed out the irony of the U.S. losing out on high-paying jobs and innovation due to regulatory uncertainty. He mentioned that he finds more clarity in markets like Japan, the UAE, Singapore, and the European Union.

These regions, according to Garlinghouse, offer a more supportive environment for blockchain and cryptocurrency innovations. He expressed disappointment that the U.S. has fallen behind in this area, saying that the U.S. could have been a leader in solving this. But instead, the “history books will look at this SEC administration as being ‘Luddites'”, he said.

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Political Dynamics In the Nation

Apart from slamming the SEC, the Ripple CEO also touched on the partisan nature of crypto policy in the U.S. He found it surprising that technology like cryptocurrency has become a partisan issue.

“It’s shocking to me as a kid who grew up in Kansas that somehow technology like this has become a partisan issue,” he remarked. He criticized Senator Elizabeth Warren for framing all crypto use as being for bad actors. In addition, Garlinghouse observed a divide where Republicans are seen as pro-crypto, while many Democrats are anti-crypto.

He agreed with a post suggesting that Biden’s anti-crypto stance would gain him no votes, while Trump’s pro-crypto stance could gain many. Despite this, Garlinghouse acknowledged that some leading Democrats are trying to resolve the issue.

He has been advocating for clear crypto regulations for five years and remains hopeful that the issue will eventually become non-partisan. However, he noted the current partisan divide, saying, “Republicans are playing chess while the Democrats are playing checkers,” on crypto policy.

Meanwhile, his comments come amid a time when XRP price was also noting a massive spike. During writing, it traded above the $0.58 mark, after crossing $0.59 recently.

Also Read: SEC’s Hester Pierce Breaks Silence On Replacing Gary Gensler

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