September 13, 2023 at 11:45 GMTModified date: September 13, 2023 at 11:45 GMT
September 13, 2023 at 11:45 GMT

Crypto start-ups ‘should avoid the US’, says Brad Garlinghouse

The US is possibly the worst location in the world to launch a crypto start-up, or so says Ripple CEO Brad Garlinghouse.

Ripple (XRP). Pic: Shutterstock

The US is possibly the worst location in the world to launch a crypto start-up. That’s according to Brad Garlinghouse, Ripple’s CEO.

Ripple, of course, has been embroiled in a near three-year-long suit with the US Securities and Exchange Commission (SEC).

Speaking at a Token 2049 panel in Singapore yesterday, Garlinghouse said: “The only country I would not encourage you to start a company right now is in the US.”

Separately, it’s also been revealed today that Ripple will do 80% of its hiring this year outside the US in countries where there is better regulation, according to a Bloomberg interview with the Ripple CEO, also at Token 2049.

According to Garlinghouse: “You see markets like we have here in Singapore, certainly even what we’re seeing in Hong Kong, the UK, Dubai, where the governments are partnering with the industry, and you’re seeing leadership, providing clear rules and you’re seeing growth. And frankly, that’s why ripple is hiring there, 80% of our hiring this year will be outside the United States.”

Speaking yesterday, Garlinghouse also claimed that the SEC is carrying out a political war on the crypto world through its many ongoing lawsuits. He added that the recent Ripple and Grayscale’s court wins against the SEC could hint at a turn in favour of crypto.

“I think you’re seeing the momentum shift. I think that it used to be that a lot of judges were like: ‘Well, the SEC is always right,’ and they weren’t fighting that [but] I think you’re starting to see the pattern change,” said the CEO.

Ripple vs SEC

On 13 July of this year, a US court found that XRP was not a security when traded with the public on an exchange, but it is when it’s sold to institutional investors. The SEC has since been attempting to appeal this decision.

Last month, XRP lawyer John E Deaton claimed that the SEC lawsuit against Ripple has cost the $XRP token almost three years of adoption in the US.