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The U.S. Behind other Developed Markets in Crypto.
The United States has not been the most friendly towards cryptocurrencies. There are several challenges that crypto startups face in the country, and this has caused the industry to be backward.
Ripple CEO Brad Garlinghouse reiterated this in a recent interview on CNBC. Brad said that the industry’s biggest challenge is the lack of regulatory clarity, which makes it difficult for startups to thrive.
According to Brad, the lack of precise regulation for the industry has caused several crypto and blockchain startups to leave the U.S for other countries where laws are more friendly. He even discourages crypto entrepreneurs from building startups in the country.
“In the united states, the laws have not been clearer…The leadership we have seen outside the united states is way ahead of the US. The competitiveness of the US in these developing markets around crypto and blockchain has fallen behind, and more talent and investment are going out of the United States… I recommend others not start companies in the USA Because there isn’t that clarity,” he said.
Biden administration acknowledges challenges.
If anyone knows about the challenges facing crypto in the U.S, Brad does. His company, Ripple, has been in court since 2020 as the SEC claims XRP is security, not a cryptocurrency. This has resulted from a lack of clarity in terms of regulations that define what a cryptocurrency is and what a security is, for example.
Fortunately, the Biden administration is working on a regulatory framework for cryptocurrencies, a move that has received a lot of commendation from the crypto community. Biden has already signed an executive order on nine march 2022 that gives regulatory clarity for crypto.
Brad says that this move acknowledges that the crypto industry is backward in the country compared to other developed countries.
“That is what I have been saying for years; I think the core of the Biden crypto executive order is acknowledging that exact point.”
Crypto is taking its place in the U.S.
With the Biden administration taking steps to bring clear regulations in the crypto industry, cryptocurrencies and businesses will likely see moderate growth soon. The clarity will also make more crypto startups spring up and give Americans more confidence in the industry, an ingredient that is required for mainstream adoption to happen.