- Lack of regulatory clarity in the U.S. is driving crypto offshore.
- SEC’s enforcement approach may stifle innovation in the industry.
- Clear and consistent guidelines are needed to promote innovation and growth.
The United States has been a major player in the development and adoption of cryptocurrency, with numerous companies and individuals leading the way in innovation and investment.
However, recent events have led to concerns that the country is falling behind, and that crypto is moving offshore as a result. In a recent interview, Garlinghouse, CEO of Ripple, emphasized the need for clear and consistent guidelines to help promote innovation and growth in the crypto industry.
.@KaileyLeinz asked “If the US doesn’t get its act together…is all of this [crypto] going offshore?”
Me: “It already is.”
I’ve said it before, and I’ll say it again – crypto moving offshore is not good for American innovation. Period, full stop. https://t.co/OWz8uoRHrI
— Brad Garlinghouse (@bgarlinghouse) March 2, 2023
He argued that the lack of regulatory clarity in the U.S. has created uncertainty for businesses and investors, which has led to some companies looking to move offshore. Further, Garlinghouse purported that if the SEC prevails, it could set a precedent for the regulation of cryptocurrencies and potentially stifle innovation in the industry.
Garlinghouse continued by stating that the SEC’s regulation through enforcement, as opposed to creating a framework for growth while protecting consumers, is not a healthy way to regulate an industry.
Garlinghouse’s comments reflect a growing consensus among industry leaders that regulation is necessary for the long-term success of the crypto industry. While there is still much debate about the best approach to regulation, there is a growing recognition that the U.S. needs to take action if it wants to remain competitive in this rapidly-evolving field.
Nevertheless, this trend is not only worrying for American businesses and investors but also for the broader economy, as the loss of leadership in this emerging industry could have significant implications for innovation and growth.