at the latest interview Ripple Labs co-founder and executive chairman Chris Larsen expressed his views on the U.S. regulatory environment and its impact on the blockchain industry in an interview with Bloomberg Television.
San Francisco was once on track to become the “blockchain capital of the world,” but lost that status due to hostile government policies and regulatory crackdowns, Larsen claimed.
Ripple Co-Founder Urges Proactive Crypto Regulation
Larsen said London, Singapore and Dubai have emerged as bigger blockchain hubs as actions by the U.S. federal government have forced operations offshore.
While Ripple is still headquartered in San Francisco, Larson believes that the Biden administration’s decision to push the industry overseas has hindered the city’s growth. Office vacancies rose sharply in San Francisco, rising to nearly 32% in the second quarter from less than 4% in 2019.
Despite the challenges facing the U.S. blockchain industry, Larson remains optimistic about the future of blockchain and cryptocurrencies in the country.
However, he emphasized that Ripple primarily recruits overseas and encouraged entrepreneurs to consider starting their companies in London, Singapore or Dubai. Larsen attributes the attractiveness of these locations to their clear regulatory frameworks that protect consumers and foster innovation.
Larsen’s remarks underscore the ongoing tension between cryptocurrency entrepreneurs and the U.S. Securities and Exchange Commission (SEC), particularly under the leadership of SEC Chairman Gary Gensler.
In the wake of major scandals, including the collapse of digital asset exchange FTX, the U.S. Securities and Exchange Commission (SEC) has sought to increase oversight of the industry.
This was further exemplified by the SEC’s recent appeal against the classification of cryptocurrencies as securities and overturning the SEC’s decision to block Grayscale Investments LLC from launching a bitcoin spot exchange-traded fund (ETF). regulatory battle.
Larsen criticized Gensler’s approach, accusing him of engaging in “enforcement oversight” rather than seeking more clarity from lawmakers. Larsen argues that Gensler prefers the lack of clarity so that he is free to set the rules when he implements his bullying tactics.
Additionally, Larson expressed his concerns about Sen. Elizabeth Warren’s stance on cryptocurrencies, claiming that her policies reflect anti-cryptocurrency sentiment rather than a focus on consumer protection.
These statements from the Ripple co-founder underscore the need for proactive regulatory action in the blockchain industry and highlight the challenges facing cryptocurrency entrepreneurs in the United States.
Ongoing regulatory debates and their potential impact on industry growth and ongoing legal developments (such as the Ripple Labs and SEC cases) remain critical to stakeholders in the evolving blockchain and cryptocurrency landscape.
XRP, the world’s fifth-largest cryptocurrency, traded at $0.4989, briefly dipping below the psychologically important $0.500 level. Over the past 24 hours, the token experienced a minor correction of 0.4%.
However, XRP’s losses have been accumulating over the past seven-day period, dropping 4.7% during that time period.
Featured image from iStock, chart from TradingView.com
