Currently, the US is going through a huge push to regulate the crypto market. This has put many crypto staking platforms and crypto firms in general under scrutiny and caused many bankruptcies. The CEO of Ripple, Brad Garlinghouse, has made comments on the topic. He believes the US is among the worst places for crypto startups to be right now, if not the very worst. Ripple itself is under scrutiny by a US regulator and battling it out in the courts.
The CEO outright says that the US would be the only place he would not recommend startups establish themselves. In such an environment, it is hard to know when a crypto bull run will be.
Balanced Crypto Regulation Across Nations: Lessons for Crypto Staking Platforms
Other countries have been taking a more light-handed approach towards the whole affair. Countries like Singapore, the UK, Switzerland, and the UAE have been making similar moves. They, too, have tried to increase regulation in the market, but they have also encouraged innovation. Rather than trying to strangle the crypto sector, they want it to change its ways to be more consumer-friendly. Such a balance is what the Ripple CEO says that the US should be aiming for.
The SEC has been particularly ruthless, according to him. Its numerous lawsuits on the industry all at once resemble war more than it does a regulatory change. So when will crypto recover? Well, even though some crypto firms have folded, more recent examples show that using lawsuits may not be so wise. Ripple and Grayscale have both come out on top in the courts recently. It seems judges are now seeing crypto firms in a positive light.
This is not a cut-and-dry case so far, and this may not be a precedent that applies to all crypto staking platforms and firms. However, it is still an indicator to other crypto firms on how they should proceed in terms of their legal defence.