Brad Garlinghouse took to Twitter on Tuesday, January 3, and laid out what he thinks the year that just began will look like. In his view, “regulatory clarity for cryptocurrencies,” should be a priority for those currently in power.
Moderate optimism about crypto regulation
On the occasion of the first day of the 118th Congress, Ripple CEO Brad Garlinghouse took to Twitter to share his observations, vis-à-vis potential regulation of the cryptocurrency market in the United States. He showed moderate optimism on this occasion, combined with hope for a breakthrough on the issue this year.
In one of his first words, the Ripple CEO indicated that regulatory intentions are bipartisan and bicameral. Such an approach by those in power should provide an opportunity to both understand the issues and take concrete action. On this occasion, Garlinghouse referred to laws such as the Securities Clarity Act, the Responsible Financial Innovation Act and the Clarity for Digital Tokens Act. He considered them proof that the United States does not start building its regulatory framework for the cryptocurrency market with a so-called “blank slate.”
There are no perfect solutions, but many can be good ones
In further words, Garlinghouse points out that no law is perfect, and it will be difficult to satisfy all market players by doing so. In his own words:
“No bill is perfect and there will probably never be one that satisfies everyone. But perfection should not be the enemy of progress – these proposals are more than a starting point for debate in this new Congress. The stakes could not be higher.”
He also pointed out how the picture of current regulations in the United States compares to other regions of the world:
“Singapore, the EU, Brazil and Japan all have crypto frameworks, and the UK is well ahead of the US. However, the lack of coordinated standards around the world (or any in the US) continues to push business to countries with lower regulatory bars, with sometimes disastrous consequences (FTX).”
Lack of cryptocurrency regulation is a threat to the market
The last of the sentences quoted above bluntly indicates what a trouble the lack of regulatory transparency is. The example of the failed FTX exchange is proof of this. On the other hand, those who suffer the most from this are the users of these entities.
“Changing the status quo is never easy, but I believe the will to act is there. The building blocks of regulation are already in place, and we have a chance to do right by the millions of Americans who are already and will continue to be interested in cryptocurrencies,” Garlinghouse concluded.