Despite winning a legal battle against the Securities and Exchange Commission, Ripple CEO Brad Garlinghouse pointed out that American financial institutions are still hesitant to embrace cryptocurrencies like XRP. The Options Clearing Corporation (OCC) and other regulatory bodies are perceived as crypto-averse, impacting banks’ willingness to engage. Yassin Mubarak of Dizer Capital suggested that broader adoption of cryptocurrencies in the US may hinge on a change in administration.
Ripple continues to face ongoing reluctance from American financial institutions to adopt cryptocurrencies like XRP, even after legal victories against the SEC. Speaking at the DC Fintech Week conference, Garlinghouse shed light on the broader and more cautious approach taken by the US government towards cryptocurrencies as a significant factor in this hesitancy. Despite Ripple’s courtroom successes, major financial entities await clearer guidance from the government before diving into cryptocurrency investments.
Garlinghouse highlighted the noticeable resistance from regulatory bodies such as the OCC towards the crypto industry. He expressed his view that once a shift in this stance occurs, it’s likely that US banks will deeply engage in cryptocurrencies. Yassin Mubarak echoed these sentiments, indicating that widespread adoption of cryptocurrencies in the US may depend on a change in administration.
In a historic decision issued in July, a US federal judge ruled that XRP does not constitute a security. This ruling was seen as a positive development for Ripple, XRP, and the entire cryptocurrency sector. However, the cautious approach taken by the US towards cryptocurrencies contradicts other countries progressing in this field due to clear regulations and increased cryptocurrency-related investments.
Garlinghouse expressed concerns that the US needs to solidify itself as a leading company in the global cryptocurrency market. He believes that markets elsewhere are becoming more attractive to cryptocurrency entrepreneurs and investors over time. However, he still hopes that the US will work to develop a favorable regulatory environment for cryptocurrencies in the coming decade.
Amid these challenges, Ripple is focused on expanding its operations internationally. Given the challenging business environment, Garlinghouse questioned the feasibility of expanding their presence in the US, pondering why the company needs to invest in expanding its workforce in the US when the regulatory landscape is more conducive elsewhere.
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