Brad Garlinghouse, the CEO of the blockchain payment company that fights the US SEC in court over the status of XRP, believes there’s a lot of positive news in terms of crypto adoption worldwide.
He made these comments following the recent crackdown from the Securities and Exchange Commission against Kraken and its crypto staking services.
Step Back and Review
Being the world’s largest economy, the actions undertaken by the US, its government, and the local regulatory bodies tend to cause significant damage to the cryptocurrency industry. After speculations that the SEC could go after crypto staking, the watchdog followed through and halted Kraken’s services.
Additionally, there have been multiple reports from the past year or so, including executive orders from President Biden, suggesting upcoming harsh regulations. Nevertheless, Garlinghouse believes people should look at other jurisdictions, which are significantly more friendly towards the industry.
Among those is Dubai, which has introduced several rulebooks allowing crypto companies to set up offices while regulated by the local watchdog. The Australian government is also reportedly looking to update its existing regulatory frameworks to include licensing and custody of crypto assets.
Garlinghouse’s other examples included the recent guidelines from the South Korean Financial Services Commission, UK HMT’s new consultation on “the government’s intent to establish a proportionate, clear framework,” and Brazil’s new legislative rulebook.
Ripple’s CEO, though, didn’t miss out on the opportunity to blast the US for its controversial approach.
The list goes on (Brazil’s new legislative framework etc) Note the commonalities – these regulators are providing leadership and doing the work that we are desperately missing in the US – unsurprisingly, this is where companies like Ripple are growing!
— Brad Garlinghouse (@bgarlinghouse) February 9, 2023
Coinbase CEO’s Take
Just a day before the SEC’s clampdown became official, Brian Armstrong, the CEO of Coinbase, commented on the then-rumors, asserting that it “would be a terrible path for the U.S. if that was allowed to happen.”
According to him, staking provides multiple benefits for users and the entire industry, including scalability, increased security, and reduced carbon footprints.
Interestingly, Coinbase also suffered even though the SEC went after Kraken. The shares of the publicly-traded company fell by over 14% in a day as a large portion of its revenue comes from staking.