Anticipated Changes in Crypto Regulation Post-Election
Ripple CEO Brad Garlinghouse has shared his expectations for significant advancements in cryptocurrency regulation following the upcoming U.S. presidential election. During his speech at the Crypto Investor Day, Garlinghouse highlighted a recent cross-appeal aimed at clarifying the definition of an investment contract under the Securities Act.
Potential Impact on Crypto Platforms
Crypto investor Anthony Pompliano raised concerns about the potential classification of crypto tokens as investment contracts and its impact on platforms like Coinbase. Garlinghouse warned that a favorable ruling for the SEC on this matter could spell disaster for the industry, potentially driving more operations offshore.
SEC’s Contradictory Stance on Crypto
Garlinghouse also addressed the SEC’s seemingly contradictory actions, including its approval of Coinbase’s IPO and Bitcoin ETFs. He described the SEC’s approval process as reluctant, suggesting they were “forced into it” and criticized the notion of crediting them for these decisions.
Optimism for Ripple’s Future
When questioned about Ripple’s prospects over the next 12 to 18 months, Garlinghouse conveyed his enthusiasm for rising institutional interest. He emphasized Ripple’s expansion into new areas such as custody and stablecoins, noting there is much to be optimistic about. In a light-hearted moment, when prompted to say something positive about current SEC chair Gary Gensler, Garlinghouse quipped, “There’s gonna be a new SEC chair.”
Political Implications for Crypto Regulation
In the political realm, former President Trump has vowed to replace SEC Chair Gary Gensler if re-elected, aiming to appoint regulators who are supportive of the crypto industry. Conversely, Harris has pledged to introduce balanced regulations to protect digital asset investors, although the specifics remain undefined.
Support for Pro-Crypto Candidates
Garlinghouse has been vocally supporting pro-crypto candidates, recently endorsing John Deaton, who is challenging anti-crypto Senator Elizabeth Warren in Massachusetts. As the election draws near, the future landscape of crypto regulation continues to be shrouded in uncertainty.
