2 mins read Ripple Labs chief executive Brad Garlinghouse has warned of a crypto brain drain in the US because of poor regulatory oversight.
Garlinghouse said there have been several contributing factors, but notably – the lawsuit that the US Securities and Exchange Commission (SEC) is still fighting against his company.
He argued that the lawsuit is not just targeting Ripple Labs, but the crypto industry as whole.
He cautioned that enforcement is not really a “healthy way” to regulate the industry, especially in the absence of a clear-cut and tight regulatory framework.
Speaking to Bloomberg on Friday, March 3, he stated that the SEC’s approach to the crypto industry was stifling innovation and limiting the country’s chances of turning itself into a blockchain and crypto innovation hub.
Worse still, Garlinghouse expects that the brain drain has begun, with the industry shifting overseas. He urged that this worrying trend should serve as a catalyst for positive change in the country.
Garlinghouse previously spoke about some of the worrying decisions SEC had made over recent months, including the regulator’s decision to go after crypto staking, a vital part of the ecosystem.
Garlinghouse is not the only person to have warned the watchdog to tread carefully and not risk over-regulation. A former SEC insider was similarly worried about the way the regulator had chosen to move forward with its enforcement decisions.
At the time, former SEC chief counsel and head of regulatory and policy at Bain Capital TuongVy Le said that any regulatory decision should inform not just punish. There have also been calls to hasten the regulation of the crypto industry.
Meanwhile, Garlinghouse remains skeptical of the outlook for crypto companies in the US should SEC continue to high-handedly strike down start-ups or established entities without offering much insight as to why.
Looking for your next crypto casino? Check out: Bitcasino, Gamb.co or FortuneJack.
