- Garlinghouse highlighted that smart crypto regulations are key to realizing the future of Web3 in the U.S.
- Ripple CEO commended Congress for kickstarting crypto regulations, unlike the Gary Gensler era.
- Enhanced clear crypto regulatory outlook in the U.S. has bolstered mainstream adoption.
Ripple Labs CEO, Brad Garlinghouse, testified before the United States Senate Committee on Banking, Housing, and Urban Affairs on Wednesday, July 10. Garlinghouse told the committee that “smart” legislation for the crypto industry should be based on the core principles of consumer protection and a pro-innovation mindset.
Garlinghouse noted that cryptocurrency investors need regulations to protect them from fraud and scams in the nascent industry. With the cryptocurrency industry attracting some bad actors, Garlinghouse told the banking committee that the space needs proper oversight.
However, Garlinghouse reminded the lawmakers that the United States has lagged behind other major financial hubs in regulating the crypto market. As such, Garlinghouse urged the lawmakers to consider smart regulations that foster pro-crypto innovations.
“ A constructive and workable framework for digital assets and stablecoins that achieves these goals will expand access to financial markets, create jobs, boost the economy – and put the U.S. on the path to being a global blockchain and crypto leader,” Garlinghouse noted.
Related: Ripple CLO Highlights Real Crypto Use Cases Ahead of Senate Testimony
Garlinghouse’ Sharp Rebuke of the ‘Gensler-Era’ SEC
According to Garlinghouse, the cryptocurrency market has recorded more gains since the Donald Trump administration took office earlier this year compared to the four year tenure of President Joe Biden. Garlinghouse highlighted that former SEC chair Gary Gensler demonized the crypto industry while the current administration believes that the nascent technology is here to stay.
“I urge you to prioritize the passage of market structure legislation for digital assets through this Committee and the full Senate, to provide the rules and regulations needed to ensure that the U.S. becomes the crypto capital of the world,” Garlinghouse noted.
Garlinghouse Highlights Ripple’s Legal Victory
During Gensler’s tenure, Ripple Labs suffered legal headwinds through a lawsuit that drained the XRP community. However, the current SEC administration has already signaled its goodwill to end the lawsuit and create clear cryptocurrency guidelines.
Furthermore, the court ruled that XRP sales on cryptocurrency exchanges are not securities although the direct sales to institutions violated the SEC’s securities laws. Recently, Ripple Labs dropped its appeal case in a bid to end the longstanding legal dispute with the SEC.
Related: XRP Chart Flashes Rare Pattern from 1,500% Rally
“Ripple was the tip of the spear of this regulation-by-enforcement campaign and was subject to an enforcement action in 2020. Fortunately, after four years of a hard-fought legal battle, we prevailed. The court ruled in our favor on everything that mattered – including finding that the token XRP is not, in and of itself, a security,” Garlinghouse added.
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