Ripple’s CEO said China is ahead of the United States in terms of crypto regulatory thought.
Ripple CEO Brad Garlinghouse said he considers China ahead of the U.S. as both countries wade the regulatory waters of the burgeoning crypto space.
As part of the Chamber of Digital Commerce’s Parallel Summit on July 17, Garlinghouse expressed admiration for China’s approach to the crypto space. “In some ways I’m in awe of it,” he said.
China sees the potential?
China’s position comes from an appreciation for crypto’s potential, Garlinghouse posited. He explained:
“I think they’re realizing that some of these technologies may in fact be very foundational for the future of how financial systems work, and they want to make sure that they have capabilities at the heart of them.”
Regulation gives entities confidence?
Offering rationale, Garlinghouse mentioned Bitcoin and Ethereum regulatory classification as an example.
U.S. regulating bodies came forward in 2018 and 2019, classifying Bitcoin and Ethereum not as securities, but as Commodities. Such rulings now give companies and individuals more confidence in participation around those assets, the Ripple CEO explained.
“Today, because of the mining control of Bitcoin and Ether in China, these are technologies controlled by China,” Garlinghouse said. “Twenty-five years ago the U.S. was a leader in making the internet what it is today, but part of that came from regulatory clarity,” he added.
The Ripple head said the same possibility for advancement currently exists around blockchain, although the U.S. has not jumped on the opportunity, pointing instead to its focus on other technology like 5g.
As the crypto space sits waiting on further regulatory rulings for the thousands of other assets on the market, Ripple’s XRP asset itself sits as a possible security, without firm guidelines on a decision.