In a recent fireside chat at the Dubai Fintech Summit, Brad Garlinghouse, the CEO of Ripple, disclosed that defending the company in its lawsuit with the Securities and Exchange Commission (SEC) could cost around $200 million. While discussing cryptocurrency regulation in the United States, Garlinghouse expressed his concern about the lack of clear rules.
Compared to other countries, the U.S. is said to be lagging behind in terms of cryptocurrency regulation, with Garlinghouse suggesting that politics are being prioritized over policy. In contrast, he praised the progress made by the United Arab Emirates (UAE) and the European Union (EU) in developing a regulatory framework for cryptocurrencies. The Markets in Crypto Assets (MiCA) legislation for Europe, which is currently in the process of being officially launched, has been described as the most sophisticated and comprehensive crypto market set of rules at this time by CoinGape.
However, the MiCA bill has not yet become effective for crypto businesses, and the exact date when it will come into effect remains unclear. In light of this, Garlinghouse has advised aspiring crypto entrepreneurs to avoid starting their businesses in the United States. He believes that many other U.S.-based firms and public companies would share his view.
The Ripple CEO has repeatedly called for crypto regulation in the past. During the World Economic Forum (WEF) in Davos earlier this year, Garlinghouse emphasized the need to strike the right balance when addressing cryptocurrency regulation. He reiterated that many people involved in crypto-related businesses would like to align with regulation, but are unsure how to do so due to the lack of defined rules.
As of now, the lawsuit between Ripple and the SEC continues; a final verdict is expected in the next three to six months. Recent developments suggest that the odds may be in Ripple’s favor, with new information emerging in the case.
Despite Ripple’s ongoing legal battle with the SEC, Garlinghouse’s statements shed light on the overall state of cryptocurrency regulation, putting emphasis on the importance of establishing clear guidelines. A comprehensive framework will not only protect investors, but also encourage innovation and growth in the industry. The progress made by the EU and UAE in this area could serve as an example, potentially leading to more balanced regulation that benefits all parties involved.
Source: Coingape
