Over the past few weeks, the fluctuating value of Bitcoin has raised concerns regarding the evolution of cryptocurrency in the global financial scene. Numerous critics calling for a ban against these alternative financial instruments or, at the very least, vigorous government regulation.
This has prompted Brad Garlinghouse, CEO of fintech company Ripple, to state that the lack of clarity on the regulation of digital assets in the United States is one of the key issues affecting the public’s perception and acceptance of any form of cryptocurrency.
US crypto regulation not enough
Best known for the cryptocurrency XRP, Ripple is currently at odds with the Securities and Exchange Commission (SEC.) The commission charged Garlinghouse and co-founder Chris Larsen with conducting an illegal securities offering that involved sales of XRPwhich raised over $1.3 billion.
It’s a situation that has been going on for over a year now and Garlinghouse is not happy about it.
Garlinghouse expressed his frustration with how the US is being left in the dust by other countries regarding cryptocurrency regulation. In the US, cryptocurrency players are not to blame when it comes to regulation; the buck literally stops with government regulators.
According to Garlinghouse, the government misunderstands how cryptocurrency tech can be applied. While the lack of regulatory clarity continues to raise numerous issues here, other countries – mostly those that are part of the G20 market – have made it a point to impose concrete guidelines to regulate the industry, thus allowing investors and entrepreneurs the freedom to participate and build.
A timely tirade
Garlinghouse’s statement comes in the wake of a ban announced last May 26th in the UK against an ad that encouraged people to buy Bitcoin. Government regulators deemed it an irresponsible move given its current volatility.
Likewise, an op-ed piece in the Wall Street Journal decried cryptocurrencies. The author called for a ban against them, citing how cryptocash is used to pay hackers for cyberattacks such as the ransomware incident Colonial Pipeline.
Elsewhere, countries have been cracking down on Bitcoin mining in light of power shortages in Iran and China.
The energy issue in cryptocurrency
Garlinghouse has long criticized the amount of energy necessary for Bitcoin mining but is quick to say that he isn’t the only one kicking up a fuss about it. Industry titans like Microsoft’s Bill Gates and Tesla’s Elon Musk have all weighed in regarding the issue.
Nevertheless, Garlinghouse is quick to assure the public that Ripple is not waging war against Bitcoin. Instead, he feels that the industry ought to focus on utility. He specifically cited that cryptocurrency and similar technologies are helping solve real problems in the real world.
Garlinghouse has also stated that his company will continue to leverage its XRP ledger and tokens for more efficient payments. But moving operations to another country may still be in the cards if the US still considers XRP a threat to security.