In a recent Bloomberg interview, Chris Larsen, the executive chairman and co-founder of Ripple (XRP), slammed the United States’ hostile government policies and regulatory crackdowns on the cryptocurrency industry, citing the “Biden administration screwed up its crypto policy.”
SEC Has Failed to Build a Friendly Crypto Environment
Speaking to Bloomberg, Larson noted the United States Securities and Exchange Commission (SEC) lost on “everything that was important to it and important in the regulation of the digital asset industry.”
He criticized the SEC for falling behind in the race to design an affable environment for the burgeoning industry, highlighting that it is about time for Congress to take the lead on positive crypto and blockchain policies.
The address expanded on some of Larsen’s frustrations with U.S. regulations that have led to several crypto-focused companies to consider moving to a different country due to the SEC’s incessant attacks and aggressive regulatory policies.
The Ripple co-founder argued the US legal system has to bring the crypto industry “back in the game,” for the country to flourish in terms of technological advancements.
On September 7, Larsen took to X to lament the ongoing regulatory crisis in the US, hoping this is the beginning of the end of the SEC’s policy of regulation by enforcement. He wrote,
“I sincerely hope we’re seeing the beginning of the end of the SEC’s policy of regulation by enforcement. The Courts are rejecting it, and now it’s time for Congress to take the lead on crypto policy.”
I sincerely hope we’re seeing the beginning of the end of the SEC’s policy of regulation by enforcement. The Courts are rejecting it, and now it’s time for Congress to take the lead on crypto policy.
Thanks @EdLudlow @technology for the chat! https://t.co/3gZOR4lq5J
— Chris Larsen (@chrislarsensf) September 6, 2023
Ripple Co-founder Calls Gary Gensler a “Bully”
Furthermore, he commented on the latest court judgment in favor of Grayscale over its application to convert its Bitcoin Trust (GBTC) into a spot Bitcoin exchange traded fund (ETF), noting it “really admonished the SEC in a way that you don’t really see very often.”
The Ripple executive chairman also called out to the SEC chair, Gary Gensler, summoning him as a “bully.” Larson said that without clear guidelines from Congress, under Chairman Gary Gensler, the SEC has been on the warpath to pull all cryptocurrencies under the securities umbrella, taunting crypto companies and slapping billion-dollar lawsuits on them in bad faith.
He accused Gensler of preferring a lack of regulatory clarity so that he could “make up the rules as he goes along through bullying.”Larsen called this approach un-American and emphasized that clear rules should come from elected legislators, not “power-hungry” decision-makers.
He sat down for the interview with Ed Ludlow, co-host of Bloomberg Technology on September 6, 2023 where he expressed disappointment that the Biden administration’s policies have pushed the crypto industry offshore.
According to Larsen, this has resulted in cities like London, Singapore, and Dubai becoming the new global capitals for blockchain, at the expense of San Francisco, once the blockchain capital of the world, and the U.S. at large. He said,
“They pretty much killed San Francisco from being what it was. We owned it and we don’t anymore because the Biden administration, for whatever reason, decided they want to push this industry offshore.“
Ongoing War is Pushing crypto companies to other Countries
Larsen’s remarks underscore the ongoing tension between crypto entrepreneurs and the US Securities and Exchange Commission, which has sought to more aggressively regulate the industry following the collapse of FTX.
Such forced enforcement waves have caused outrage and anxiety in the crypto industry, triggering a volatile phase in the entire digital asset ecosystem. These episodes have also caused significant disruption in the cryptocurrency industry, with numerous crypto companies struggling to operate under such stringent rules, resulting in brutal cost-cutting.
Other market experts also believe the United States is causing a major roadblock, impeding the development of the crypto industry. Recently, John Deaton, a prominent pro-ripple lawyer, blasted the SEC, specifying that the Ripple vs. SEC lawsuit has affected Ripple’s growth and hurt the Ripple (XRP) adoption rate in the United States.
The point here is this: What could have happened regarding adoption of #XRP during the last 3 years, if the lawsuit was never filed? 🤷♂️
Would Coinbase today be announcing it acquired a stake in Ripple, instead of @circle? 🤷♂️
But I do know, despite Ripple’s continued and… https://t.co/pGzOaWsGZX
— John E Deaton (@JohnEDeaton1) August 22, 2023
Is the United States Losing Out on Crypto?
Despite these concerns, Larsen remains hopeful about the future of blockchain and crypto in the US. However, he mentioned that Ripple is primarily hiring employees from abroad, suggesting that entrepreneurs should consider doing the same.
According to a recent report, the number of blockchain developers in the U.S. has declined every year since 2017. Meanwhile, the U.S.’ share of blockchain developers has fallen 2% per year in the last five years, dropping to 29% last year from 40% in 2017. The report read,
“With the growth of crypto developers in other regions, such as India, Africa, and LATAM, the U.S. must adapt its strategies and policies to foster innovation, attract and retain talent, and ensure that its interests are protected in the development of new financial and technological standards.”
We at Crypto-Economy believe if the U.S. does not get its crypto affairs straight and support American blockchain innovations, the country will lose out on a massive potential to create a new economic sector that could boost the country to greater heights.
