The ongoing lawsuit between Ripple and the United States Securities Exchange Commission (SEC) has captured the attention of the crypto industry. Recently, Ripple’s CEO Brad Garlinghouse revealed the jaw-dropping cost of defending the company in the lawsuit and shared his thoughts on US crypto regulation.
Ripple’s $200 Million Expenditure on the Lawsuit
During a fireside chat at the Dubai Fintech Summit on May 8, Garlinghouse disclosed that the company has spent a staggering $200 million defending itself against the SEC lawsuit. This high-profile case has put significant financial pressure on Ripple, but the company remains determined to come out on top.
Ripple CEO’s Discontent with US Crypto Regulations
Garlinghouse also expressed his dissatisfaction with the US crypto regulations, stating that they lag behind other countries. He unfavorably compared the US regulatory progress to the regulatory progress made by the United Arab Emirates virtual asset regulatory authority and the recent Markets in Crypto-Assets (MICA) bill in the European Union. According to Garlinghouse, the US’s regulatory climate is unfavorable for crypto entrepreneurs.
Key Advice to Entrepreneurs
During the fireside chat, Garlinghouse advised entrepreneurs to avoid starting their ventures in the United States due to the current regulatory climate. He believes that many US-based companies and public entities would agree with this recommendation.
Garlinghouse also conveyed his regret to SEC Chair Gary Gensler about the US’s substantial lag behind other countries in regulating the crypto industry. He emphasized the challenges of dealing with a country that prioritizes politics over policy, particularly as Ripple expands into the United Arab Emirates.
Importance of Proactive US Crypto Regulation
Given the significant strides made in crypto regulation worldwide, it is crucial for the United States to become more proactive in developing a regulatory framework that caters to the major stakeholders. Ripple’s high-profile lawsuit has highlighted the need for a clear and sensible regulatory approach that fosters innovation and growth in the crypto industry.
