Ripple Chairman Chris Larsen Criticises US Crypto Policy

Chris Larsen, the Co-Founder and Executive Chairman of Ripple Labs, recently discussed several key issues in the cryptocurrency industry during an interview with Bloomberg Technology's Ed Ludlow. Larsen expressed his strong criticisms of the United States' approach to cryptocurrency and blockchain regulation, as well as his thoughts on Ripple Labs' ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

U.S. Crypto Policy Criticisms:

Larsen was highly critical of the United States' crypto policy, particularly under the Biden administration. He expressed disappointment that these policies have essentially pushed the cryptocurrency industry offshore, with London, Singapore, and Dubai emerging as new global capitals for blockchain innovation, at the expense of San Francisco and the U.S. overall. Larsen lamented that San Francisco, once a global blockchain hub, has lost its status due to these policy decisions.

According to Larsen, the Biden administration's actions have been detrimental to the city, and he suggested that San Francisco's 30% vacancy rate might have been significantly lower if it had retained its status as the global blockchain hub.

Ripple Labs and the SEC:

Discussing Ripple Labs' legal battle with the SEC, Larsen highlighted that the SEC had lost on all significant aspects related to cryptocurrency regulation. He viewed this as a pivotal moment and positive news for the industry. However, he criticised the SEC's approach of "regulation by enforcement" and called for clear legislative rules to be established by Congress instead.

Larsen also had strong words for Gary Gensler, the head of the SEC, accusing him of preferring a lack of regulatory clarity to make rules as he goes along through bullying tactics. He emphasised that clear rules should come from elected legislators rather than unelected decision-makers like Gensler.

The Need for Clear Rules:

Larsen stressed the importance of having clear and well-defined rules that protect consumers while fostering innovation in the cryptocurrency industry. He contrasted the lack of clear guidelines in the U.S. with places like London, Singapore, and Dubai, where rules are clear and designed to protect consumers and encourage innovation.

Furthermore, Larsen discussed the impact of U.S. crypto policies on San Francisco's ambitions to become the "blockchain capital of the world." He attributed San Francisco's challenges in achieving this status to the decisions made at both the city and federal levels, particularly those of the Biden administration.

Despite these criticisms, Larsen remained optimistic about the future of blockchain and cryptocurrency in the U.S., encouraging entrepreneurs to consider starting their companies in locations with clearer regulatory frameworks.

In summary, Chris Larsen's interview highlighted his strong concerns about the United States' crypto policies and their impact on the industry. He criticised the Biden administration's approach, expressed disappointment in the SEC's tactics, and stressed the importance of clear regulatory rules to ensure both consumer protection and innovation in the cryptocurrency space.