Cash News
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 we’ve had, but I also believe no matter what happens, we’re going to have a more pro-crypto, more pro-innovation Congress than we’ve ever had.”
Despite the optimism, he advised startups to “incorporate outside the US” and said that roughly 95% of Ripple’s 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 Ripple’s sales of XRP to institutional investors configured investment contracts, violating securities laws as a result.
Yet, the court understood that Ripple’s programmatic sales and other distributions of XRP did not meet the criteria for investment contracts under the Supreme Court’s 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 industry’s 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 hasn’t 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 he’s the crypto president. Team Harris has been more nuanced, but they had some of the most constructive things they’ve 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 there’s lots of disagreement about that … We’re going to see forward progress, and I certainly am looking forward to that.”