Ripple CEO Brad Garlinghouse recently accused the Biden administration of waging an “unlawful war” on the cryptocurrency industry. In an interview, Garlinghouse expressed optimism about the future of crypto under a Trump administration, citing Trump’s more favorable stance towards digital assets.
Garlinghouse highlighted Ripple’s focus on cross-border payments, utilizing its digital asset XRP to facilitate faster and cheaper transactions. However, he lamented the hostile regulatory environment in the US, which he believes has stifled Ripple’s growth within the country. He pointed to a lawsuit filed by the SEC four years ago regarding XRP’s classification as a security, which has deterred US financial institutions from engaging with Ripple. As a result, 95% of Ripple’s customer base is currently located outside the United States.
The Ripple CEO contrasted the US approach with other major economies like the UK, Japan, and Switzerland, which he says are embracing the crypto industry. He believes the US has been an outlier, ceding ground to countries like China.
Garlinghouse expressed hope that the Trump administration will bring much-needed regulatory clarity to the crypto space. He criticized the current regulatory ambiguity, citing the application of outdated laws like the 1946 Howey Test to the modern digital asset industry. He anticipates that a Trump-appointed SEC and CFTC leadership will establish clear rules, enabling the US to reclaim its leadership position in the crypto sector.
The interview also touched upon Trump’s reported private meeting with Coinbase CEO Brian Armstrong to discuss key appointments. Garlinghouse believes the appointment of a crypto expert to the SEC or CFTC would be a significant positive development. He highlighted the joint efforts of Coinbase, Ripple, and Andreessen Horowitz during the election cycle to prioritize crypto on the political agenda.
Garlinghouse further discussed Ripple’s upcoming launch of a stablecoin, RLUSD (RippleUSD), aiming to tap into the growing stablecoin market. He sees a strong use case for stablecoins in facilitating cross-border payments for institutional clients.
Finally, Garlinghouse criticized outgoing SEC Chair Gary Gensler, accusing him of hypocrisy and politically motivated actions against the crypto industry. He referenced court rulings that labeled the SEC’s actions under Gensler as “arbitrary and capricious.”
