Ripple CEO: The Crypto Sector is on an Irreversible Path

Ripple's CEO Brad Garlinghouse emphasized that an important change process regarding regulations in the crypto sector has begun in the United States, indicating that there is no turning back. Speaking at the DC Fintech Week event held in Washington, Garlinghouse stated that the ship has already left the port and that it is impossible for the regulatory atmosphere in the US to return to its previous state.

Garlinghouse expressed that the strict stance during the term of former SEC Chairman Gary Gensler is no longer valid. Reminding that many major crypto companies faced lawsuits during Gensler's term, Garlinghouse stated that after the $1.3 billion lawsuit filed against Ripple, the court ruled that the sales of the XRP token to individual investors were not considered securities. This lawsuit became an important turning point for the sector and concluded last year.

In addition to the regulatory environment, Garlinghouse criticized traditional financial institutions, claiming that banks have shown a double standard toward crypto companies. Criticizing the banks' attitudes towards crypto companies requesting access to the Federal Reserve “master account,” he emphasized that the crypto sector must also comply with anti-money laundering and identity verification standards, just like the traditional financial sector. However, he stated that they should also have access rights to the same infrastructure.

In July, Ripple had applied for a bank license from OCC and made a master account application that will provide direct access to the Federal Reserve system. This move aims to secure Ripple's RLUSD stablecoin project and digital asset custody operations.

Finally, Ripple's CEO stated that the crypto industry needs the legal clarity that Ripple gained from the court decision. Garlinghouse expressed that the lack of legal clarity in the sector creates uncertainty for investors and added that the development of crypto laws is progressing slowly but yielding promising results.