Former U.S. Commodity Futures Trading Commission chair Chris Giancarlo said XRP became the “poster child” of Washington’s tough stance on cryptocurrency, but noted that the project has survived and is now moving forward.
Speaking in a recent discussion on crypto regulation and innovation, Giancarlo said regulatory clarity is critical for the future of digital finance in the United States. Without clear rules, he warned, American banks could fall behind their global peers.
Europe Moves Ahead as US Lags
Giancarlo pointed to Ripple as an example of how clear rules can unlock innovation. Ripple has recently secured regulatory approvals in Europe, allowing its stablecoin and XRP to be used more widely within the region’s financial infrastructure.
Under Europe’s MiCA framework, banks across the region can now hold and use these digital assets in a regulated manner. Giancarlo said this gives European banks a major advantage, while U.S. banks remain cautious due to regulatory uncertainty.
“Something clear is better than nothing,” he said, adding that while Europe’s rules may not be perfect, they at least allow institutions to move forward.
XRP’s Fight With the SEC
Giancarlo also touched on XRP’s long-running legal battle with the U.S. Securities and Exchange Commission, calling it a defining moment for the crypto industry.
He said XRP became a key target during what he described as the crackdown led by regulators under former SEC leadership. Despite years of legal pressure, he noted that XRP “stood up to it, withstood it, and is still standing.”
The legal fight between Ripple and the SEC, which centered on whether XRP should be classified as a security, has been closely watched across the crypto market and is seen as a test case for how digital assets are regulated in the U.S.
Banks Will Innovate When Forced
Giancarlo argued that U.S. banks tend to innovate only when regulation leaves them no choice. Once clear crypto rules are in place, he said banks will no longer be able to use regulatory risk as an excuse and will be pushed to adopt digital network technologies.
He added that the future of digital finance will not be dominated by a single blockchain. Instead, multiple networks will likely coexist, much like Visa, Mastercard, and American Express operate side by side today.
“The digital future will be just as complex as the financial system we already have,” Giancarlo said.
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