In a recent tweet, Ripple CEO Brad Garlinghouse has sounded the alarm bells over the potential exodus of crypto from the U.S., warning that this would not be good for American innovation.
In a Thursday interview with Bloomberg, Garlinghouse emphasized the need for the U.S. to embrace crypto regulation and create a clear framework that allows the industry to grow while protecting consumers.
Garlinghouse's comments come amid Ripple's legal battle with the Securities and Exchange Commission (SEC). The crypto executive argues that the case is not just about Ripple or XRP but about the industry as a whole.
He believes that the SEC's approach of regulation through enforcement is not a healthy way to regulate an industry, and that the U.S. is lagging behind other countries that have taken the time and thoughtfulness to create clear rules of the road.
"If the US doesn't get its act together and move more quickly, all of this is going offshore. It's just going elsewhere. Well, it already is," Garlinghouse said.He argued that the U.S. government needs to create a framework for crypto that allows entrepreneurs and investors to come in and look at the benefits to the country on a geopolitical basis, just as it did with the internet in the late 90s.
Garlinghouse warned that the U.S. is at severe risk of that not happening in this next evolution of technology around blockchain and crypto.
"It has already started moving outside the United States, and also the consumers are suffering because of that because you don't have the same protections that the US regulatory frameworks can provide," he said.
The Ripple boss emphasized that any framework for crypto regulation has to start with clear protections for consumers but must also thoughtfully understand that not everything in the industry can be regulated as a security.
Garlinghouse's comments highlight the urgent need for the U.S. to catch up with other countries and create a clear framework for crypto regulation or risk losing out on innovation and economic benefits.