Ripple’s CEO, Brad Garlinghouse, shared in a Twitter thread on January 3 that it is “slightly optimistic” about the United States winning “great advance” regulatory clarity for the cryptocurrency industry in 2023.
To mark the first day of the 118th Congress, Garlinghouse He shared his hopes that 2023 will be the year the United States gets regulatory clarity for cryptocurrencies, adding that support for the regulation is “bipartisan and bicameral.”
Today is the first day of the 118th Congress. While prior efforts at regulatory clarity for crypto in the US have stalled, I am cautiously optimistic that 2023 is the year we will (finally!) see a breakthrough. A thread on why…
—Brad Garlinghouse (@bgarlinghouse) January 3, 2023
Today is the first day of the 118th Congress. While previous efforts for crypto regulatory clarity in the US have stalled, I am cautiously optimistic that 2023 is the year we (finally!) see a breakthrough.
Garlinghouse said the US was not starting with a “blank slate” for regulation, citing bills such as the Securities Clarity Act, the Responsible Financial Innovation Act (RFIA) and the Clarity Act for Digital Tokens as examples.
According to Ripple’s CEO, “the stakes couldn’t be higher.” He added that “no bill is perfect and there will probably never be one that will satisfy everyone.” and that attempts to get a perfect bill should not stall Congress’s progress on creating cryptocurrency regulations and legislation.
In Garlinghouse’s opinion, the United States lags behind Singapore, the European Union (EU), Brazil, and Japan when it comes to cryptocurrency laws and regulations.
He stated that the lack of a coordinated effort to implement a regulatory framework both globally and in the US. “continues to push companies into countries [con] lower regulatory barriers,” resulting in “sometimes catastrophic results,” citing Bahamas-based FTX as an example.
Ripple is a financial technology company that operates the global payment network RippleNet in conjunction with its cryptocurrency. XRP (XRP).
In December 2020, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Ripple alleging that the company sold XRP as an unregistered security.
The SEC argued that Ripple raised billions through XRP sales and failed to register the offerings as securities as required by law. Ripple denied the allegations, claiming that XRP is a currency, not a security.
In October 2022, Garlinghouse told panelists at the DC Fintech Week conference that expects the case against the company to conclude during the first half of 2023, but he admitted that it was difficult to predict.
The case remains open with no clear sign of when it will end.
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