Brad Garlinghouse, the Ripple CEO, has shed insight into why U.S. banking institutions have failed to adopt cryptocurrencies such as XRP despite the successive regulatory triumphs over the SEC.
U.S. Banks Remain Skeptic
Garlinghouse commented on the subject during the DC Fintech Week conference. The Ripple CEO highlighted that U.S. banks remain wary of engaging with crypto despite their legal victory over the SEC. According to him, it is due to the broader governmental stance. So, large institutions would avoid crypto until they get a clear perspective from the US government on cryptos like XRP.
Specifically, Garlinghouse remarked that banks remain cautious because of perceived hostility towards the crypto industry from authorities, including the Options Clearing Corporation (OCC). In his words:
“They’re like, ‘Look, even though you won the case, the United States government is still hostile towards crypto. The OCC is hostile towards crypto.’ And until that changes, the banks in the United States are not going to engage meaningfully.”
In response to Ripple CEO’s comment, Yassin Mobarak, founder of Dizercapital, argued crypto adoption may not happen with the current U.S. administration.
Mobarak remarked: “It may require a different administration in the White House to see any real adoption of XRP (and crypto in general) in the United States.”
This explains why U.S. financial institutions haver not rushed into using $XRP after the victory against the SEC.
— Yassin Mobarak 🪝 (@Dizer_YM) November 10, 2023
Recall that in July this year, a U.S. federal court deemed XRP not a security. Experts have argued that the positive outcome was not for Ripple and XRP alone but for the wider crypto sector.
U.S. Likely Losing Crypto Leadership
Furthermore, Ripple CEO pointed out that while the U.S. maintains a skeptical approach to cryptocurrencies, other countries advance their market share by adopting clear policies and attracting crypto-related investments.
He expressed concern that the U.S. is forfeiting its potential leadership role in the crypto industry by not providing a conducive regulatory environment.
Garlinghouse remarked: “I don’t think the window has passed for the U.S. to be a leader. But I think every day that goes by, these other markets, they want the entrepreneurs there, they want growth.”
Nonetheless, Ripple CEO remains hopeful that the U.S. will establish a beneficial regulatory framework for crypto within the next decade.
Meanwhile, he reiterated Ripple’s plans to continue its growth outside the U.S. In particular, he questioned the rationale behind expanding in the U.S. when facing an adverse operational environment:
“Why would I want to hire more and more people in the United States when the U.S. is making it hostile for me to operate here?”