Although cryptocurrency has persisted as a major area of interest for investors around the world, the U.S. has struggled to implement a consistent regulatory framework for crypto trading. This relative lack of oversight has largely been seen as a boon to the industry, allowing fintech startups to rise and grow quickly.
However, some within the industry dispute the conventional wisdom that heightened regulation stifles innovation and profitability. In a recent Twitter thread, Brad Garlinghouse, Chief Executive Officer of crypto exchange Ripple, outlined how and why the U.S. Congress ought to prioritize “regulatory clarity” for crypto.
“Singapore, the EU, Brazil, and Japan all have crypto frameworks — and the U.K. is well ahead of the U.S.,” wrote Garlinghouse on Twitter. “But the lack of coordinated standards globally (or any in the U.S.) continues to push business to countries w/ lower regulatory bars — w/ sometimes catastrophic results (FTX).”
With the stakes of a failure to act made abundantly clear by the reference to crypto exchange FTX’s high-profile crash, Garlinghouse went on to describe this particular Congressional session as uniquely positioned for success in establishing proper regulations. Support for crypto regulation is “bipartisan and bicameral,” he claimed, and numerous bills have already been submitted to empower federal bodies to avert the next FTX implosion before it can happen.