In a recent interview, Ripple CEO Brad Garlinghouse admitted that the payments technology company should have done better with its relations with regulators in the United States in the early days of XRP. This comment was made in relation to the legal enforcement actions Ripple has been facing in the past few years.
Particularly, Garlinghouse noted that its failure to engage with regulators very early has seen Ripple and the crypto industry in general now “trying to make up for lost time to some degree.”
Ripple Lawsuits Could’ve Been Avoided
The Ripple-SEC case, which revolves around whether XRP is considered a security, has dragged on for years and has created uncertainty not just for XRP but for the entire crypto industry. Earlier this year, the lawsuit appeared to be nearing resolution when Ripple was ordered to pay a fine for the sale of XRP to institutional buyers, in what was a partial victory for the company.
However, this sense of closure was short-lived as the SEC quickly filed an appeal. Ripple, undeterred by this appeal, has stated that it is prepared to fight the appeal and continue defending its position in court.
Speaking at the DC Fintech Week conference, Ripple CEO Brad Garlinghouse reflected on the company’s legal struggles and the broader challenges facing the crypto industry. He pointed out that much of the trouble Ripple has faced over the past few years could have been avoided if the company had taken a more proactive approach to engaging with regulators early on.
Inferring from his statement, the crypto industry, along with Ripple, has now been trying to rectify these mistakes, which have derailed the growth of the crypto industry for the past few years.
“I look back on that, and I regret that. I think we made a mistake by not leaning in earlier, and we’re trying to make up for lost time to some degree,” Garlinghouse said.
What’s Next For The Crypto Industry?
Garlinghouse’s comments highlight a broader issue affecting not just Ripple but the entire cryptocurrency sector, which is the need for constructive engagement with regulators. In terms of regulators, Garlinghouse noted that the United States has fallen behind other countries in terms of “crypto regulations.”
The Ripple CEO made comparisons to regulators in other countries like the United Kingdom, Japan, and the United Arab Emirates, who have all made real advancements in the crypto industry in recent years. Garlinghouse didn’t shy away from attributing much of this regulatory stagnation to the leadership of SEC Chair Gary Gensler.
Looking forward, a clear-cut path for cryptocurrencies in the United States would foster growth in the industry, given the country’s position in global economics.
On the other hand, Brad Garlinghouse also stated recently that the launch of a Spot XRP ETF in the United States is inevitable.
Featured image created with Dall.E, chart from Tradingview.com