Brad Garlinghouse, CEO of Ripple Labs, thinks the U.S. is about to get a lot friendlier towards crypto. Doesn’t matter who wins the next election, Garlinghouse sees a change coming. Speaking at DC Fintech Week, he said:
“This is the most important election we’ve had, but no matter what happens, we’re going to have a more pro-crypto, more pro-innovation Congress than we’ve ever seen.”
Ripple is no small player in the crypto space. Tied to the XRP token, the company handles global payments with banks and financial institutions. Yet, 95% of their business happens outside of the U.S. because of Washington’s hostile treatment of crypto under Joe Biden.
Ripple’s legal battle and Garlinghouse’s advice for fintech startups
In 2020, Ripple got dragged into a lawsuit by the U.S. Securities and Exchange Commission (SEC). The SEC argued that XRP was a security, but Ripple scored a major win last year when a judge ruled XRP isn’t a security when sold to retail investors.
The victory was a big moment for the industry, and Garlinghouse says he’s got some advice for fintech startups navigating the current climate: “Incorporate outside the United States.”
Why? Simple. Garlinghouse sees the U.S. government as too slow and too hostile. But he’s also hopeful about the future.
“Anyone who thinks we won’t end up in a better place isn’t paying attention,” he said. “In 10 years, we’ll look back and realize the U.S. got it wrong for years, but it’ll just be a speed bump. This industry will thrive.”
Ripple has been putting its money where its mouth is, too. The company donated $45 million to the Fairshake pro-crypto political action committee.
Co-founder Chris Larsen even threw $11 million behind Kamala Harris’ campaign. And just to get his point across, Garlinghouse rocked a purple tie on stage, signaling a middle ground between red and blue.
Crypto and politics: A deepening divide
The industry has become more partisan, even though there’s been growing bipartisan support for crypto in Congress. On one side, you’ve got Trump, who called himself the “crypto president,” coming out strong for the industry.
“Obviously, Trump came out early and very aggressively in a pro-crypto way,” Garlinghouse noted. On the other side, you’ve got Kamala Harris. Her team has been quieter on crypto, but Garlinghouse pointed out that this week, they said some of the “most constructive things they’ve said publicly” on the topic.
Harris, being from Silicon Valley, has always been pro-tech, though she’s seen as an advocate of Biden’s anti-crypto acts, her being his VP. And she never rebuked the claims.
Yet, despite the differing approaches, Garlinghouse is certain of one thing: whoever wins, the U.S. will see a “reset” in its approach to crypto. The Biden administration, in Garlinghouse’s view, has been a disaster for the industry.
“No matter what happens, we’re going to leave behind a failed approach from the Biden administration,” he said. The SEC, the Office of the Comptroller of the Currency, and even the Treasury have been “hostile towards crypto,” according to him.
Personally, Garlinghouse hasn’t officially endorsed any presidential candidate. But earlier this week, he threw his support behind John Deaton, a crypto lawyer running to unseat crypto critic Senator Elizabeth Warren.
Warren’s been pushing for more oversight of the crypto industry, and she’s not winning any popularity contests here.
Harris v. Trump: Neck-and-neck
Meanwhile, the latest CNBC All-America Economic Survey shows the presidential race is a toss-up. Trump holds a narrow 48% to 46% lead over Harris. That lead is within the poll’s margin of error, meaning it’s anyone’s game.
In the key battleground states, Trump leads by just 1%, 48% to 47%. Both sides are holding tight with less than two weeks to go. This survey, which ran from October 15 to 19, gathered input from 1,000 voters across the country, with a special focus on battleground states.
Out of the total sample, 186 voters came from key states like Arizona, Georgia, and Pennsylvania. An extra 400 voters were polled just from those battleground areas, adding up to 586 in total.
So, where do voters stand on the big issues? It’s all about the economy. Inflation, the cost of living, and middle-class concerns top the list. Trump is winning big among voters who care about inflation and the economy. He’s got a 42% to 24% edge over Harris on who voters think will improve their financial situation.
About 29% of voters say it doesn’t matter who wins—they don’t expect their financial picture to change. But for those who do, Trump leads by 13 points.
