Ripple CEO Brad Garlinghouse recently expressed optimism that the U.S. Congress will become more pro-crypto after the 2024 election, regardless of the election’s outcome. Speaking at DC Fintech Week in Washington, Garlinghouse predicted that the upcoming Congress would be more supportive of both cryptocurrency and innovation, marking a significant shift in the regulatory landscape.
A “Reset” for Pro-Crypto Political Support
Garlinghouse noted that 95% of Ripple’s business is conducted outside the United States, partially due to the challenging regulatory environment within the country. In 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple, but last year the company won a landmark decision when a judge ruled that Ripple’s XRP token is not considered a security when sold to retail investors, marking a major victory for the industry.
Offering advice to fintech startups, Garlinghouse suggested incorporating outside the U.S., citing the unfavorable regulatory conditions for crypto innovation. However, he remains optimistic about the long-term trajectory of the industry, saying he believes that in the future, the current regulatory obstacles will be seen as merely a “speed bump” in the broader growth of crypto.
Political Divide in the Crypto Industry
Garlinghouse highlighted Ripple’s active involvement in supporting pro-crypto political initiatives, such as donating $45 million to the “Fairshake” pro-crypto political action committee. Co-founder Chris Larsen also recently donated $11 million to Vice President Kamala Harris’s campaign.
When discussing the candidates, Garlinghouse noted that Trump has been openly supportive of crypto, even calling himself the “crypto president.” In contrast, the Harris team has been more reserved in its public stance. Garlinghouse believes that Harris, with her Silicon Valley background, has generally supported tech innovation. Therefore, regardless of the election’s outcome, he anticipates a “reset” in U.S. crypto policy.
Despite bipartisan support for crypto-related issues, some pro-crypto voters worry that Harris’s administration might continue the Biden administration’s perceived “attack” on the industry. Garlinghouse commented, “No matter the election outcome, we will be moving past the failed approach of the Biden administration.”
Banking Cooperation Issues and “Operation Chokepoint”
Garlinghouse criticized the current administration’s hostility toward crypto, pointing specifically to the Treasury and the Office of the Comptroller of the Currency (OCC). He mentioned that banks have become increasingly reluctant to work with crypto companies, an issue known in the industry as “Operation Chokepoint 2.0.” This term is a reference to an Obama-era policy that discouraged banks from serving high-risk but legal industries, like payday lending and online gambling.
While Garlinghouse has not endorsed any specific presidential candidate, he recently expressed support for attorney John Deaton, who is challenging Senator Elizabeth Warren. Warren has been an outspoken critic of the crypto industry, advocating for increased regulation.
Garlinghouse’s remarks signal that with the 2024 election approaching, the U.S. crypto policy may soon enter a new phase with greater support for the industry.
