Post-Election Advancements in Crypto Regulation
Brad Garlinghouse, the CEO of Ripple, has expressed optimism regarding the future of cryptocurrency regulations, particularly in the wake of the upcoming U.S. presidential election. During his address at the Crypto Investor Day, Garlinghouse brought attention to a recent cross-appeal that questions the necessity of explicitly defining an investment contract under the Securities Act.
The Impact on Crypto Platforms
Anthony Pompliano, a prominent crypto investor, raised a pertinent question regarding the classification of crypto tokens as investment contracts and its potential repercussions on platforms like Coinbase, which facilitate these contracts. In response, Garlinghouse warned that a victory for the SEC on this front could spell disaster for the industry, likely driving more crypto activities offshore.
Garlinghouse’s Views on SEC Leadership
A Call for New Leadership
The conversation veered towards the apparent contradiction between the SEC’s hardline stance on the crypto industry and its approval of Coinbase’s IPO and Bitcoin ETFs. Garlinghouse was candid in his assessment, asserting that the SEC’s approval of the ETF was reluctant and forced, dismissing the notion of crediting them for it as “BS.”
When discussing Ripple’s prospects over the next 12-18 months, Garlinghouse conveyed enthusiasm about the growing institutional interest in the company. He highlighted that Ripple’s ambitions extend beyond payment flows, with ventures into the custody and stablecoin sectors. In a lighter moment, when asked to comment positively on the current SEC chair, Gary Gensler, Garlinghouse quipped, “There’s gonna be a new SEC chair.”
Political Influence and Future of Crypto Regulations
All Eyes on the Elections
The upcoming elections have significant implications for the crypto industry. Former President Trump has vowed to replace SEC Chair Gary Gensler if elected, suggesting that future regulations will favor crypto industry advocates. Meanwhile, Vice President Harris has committed to establishing balanced regulations to protect digital asset investors, although specific strategies remain vague.
In the political arena, Garlinghouse has been a vocal supporter of pro-crypto candidates, recently endorsing John Deaton in his challenge against Senator Elizabeth Warren in Massachusetts. As election day approaches, the future landscape of crypto regulation hangs in the balance, with stakeholders keenly observing the unfolding political dynamics.
