U.S crypto regulations are among the most closely watched by crypto investors, and for a good reason. The U.S is the largest economy in the world and carries the bulk of all global financial services. Therefore, the direction that it takes on regulations can significantly open up adoption by U.S citizens or lock them out.
So far, the U.S has been non-committal on any kind of crypto regulations, and it is frustrating to industry players. One crypto firm that has faced the brunt of unclear U.S regulations is Ripple. The firm has been embroiled in a battle with the SEC over whether XRP was illegal Ripple security or not.
The frustration that this has caused is best captured in the sentiments of Ripple CEO Brad Garlinghouse. In an interview on CNBC, Garlinghouse stated that the biggest problem in the U.S is not the crypto players but the lack of action from the U.S government.
Garlinghouse stated the rank and file of U.S regulators misunderstand the application of cryptocurrencies. He added that this was holding the U.S back when compared to other members of the G20, where clear laws have already been set up. This, he stated, has opened the way for entrepreneurs to come up with innovations in those countries.
So What Does This Mean for Crypto?
Well, for starters, there is the risk of the U.S lagging in blockchain technology. This is evident in the steps that other countries have taken in the adoption of this technology. For instance, China is leading the way in the use of Central Bank Issued Digital Currencies.
Many other countries are also leading the way in the adoption of crypto innovations. For instance, Bitcoin ETFs are growing exponentially in Asia, Europe, and North America (Canada). All this points to a scenario where the U.S could lag in the adoption of this revolutionary technology. It affirms Garlinghouse’s assertions that lack of clarity is hindering adoption.
The Future Direction of U.S Regulations
However, it is not all doom and doom. A few months ago, the SEC got a new chairman, and he is pro-crypto. This could be a signal of a change in tune in U.S regulations. Big banks have also been signaling better times ahead. For instance, Goldman Sachs CEO hinted that they would start issuing crypto exposure to investors with assets over $25 million.
Such factors point to the fact that the environment in the U.S is poised to get better. This spells good tidings for the market in the long run. Regulatory clarity in the U.S could unlock the next wave of gains for the crypto market and take it to heights it has never tested before.
Disclaimer: This article is not trading advice. TheDechained holds no liability for investments made on the basis of this information. We recommend independent research before making a decision to invest.