Garlinghouse has lamented the absence of clear crypto regulations in the U.S.
Brad Garlinghouse, the CEO of leading blockchain company Ripple, said most cryptocurrency companies are willing to abide by regulations. He added that there is a need for clearer regulation of what needs to be regulated to help the nascent industry to thrive.
“I think the vast majority of people in the crypto industry want to play by the rules. Let’s just be clear about what the rules are. So the first thing I think of is let’s be super clear about what we’re trying to regulate,” Garlinghouse was quoted as saying in a Collision interview.
Ripple CEO added that another regulatory issue that needs to be addressed is the lack of consistency in the space, where regulators use different approaches for different companies.
“You have some examples where regulators are going after companies and then you look at another company doing almost the same thing and they’re not saying anything [about it],” Garllinghouse added.
U.S. Is Behind Other G20 Countries, Says Garlinghouse
According to Garlinghouse, the United States is far behind other G20 countries regarding cryptocurrency regulations. He added that several G20 countries have already found ways to mitigate fraudulent crypto activity in their respective jurisdictions, as well as make sure that there are orderly markets. However, the same cannot be said for the United States.
Most G20 countries have made significant progress in regulating cryptocurrencies without as much difficulty as the U.S. has made it seem, Garlinghouse said.
When asked why the U.S. is trailing other G20 countries in crypto regulation, Garlinghouse pointed to the SEC, referring to the agency as a hammer that sees crypto-related companies as a nail.
Garlinghouse expressed concern over why the SEC is spending so much time trying to prove that XRP is security while other sectors of the crypto industry require scrutiny.
“It’s a little confusing why the SEC would spend a lot of time and energy on that when we do actually have some things happening in the market that maybe do deserve more scrutiny,” he said.
Garlinghouse: Crypto Firms Seeking Favorable Regulation
Additionally, Garlinghouse said top cryptocurrency stakeholders have been working relentlessly to engage regulators to foster the industry’s growth.
According to Garlinghouse, several regulators are concerned about crypto companies’ compliance with anti-money laundering rules (AML) and terrorist financing rules because they are foundational regulatory frameworks.