Crypto Industry Reset Expected

Crypto will see a reset regardless of the upcoming U.S. election outcomes, according to Brad Garlinghouse, CEO of Ripple.

Garlinghouse, wearing a purple tie at the 8th Annual Washington DC Fintech Week as a symbol of bipartisanship, described the current Biden administration as "hostile."

> “I think no matter what happens, we're going to see a reset,” Garlinghouse told CNBC's Tanaya Macheel on Wednesday. “We're going to see forward progress and I am certainly looking forward to that.”

As the elections approach on November 5, presidential candidates are making varied statements regarding crypto. Vice President Kamala Harris indicated her administration would support innovative technologies like AI and digital assets while ensuring consumer protection. Last week, she noted how new technologies could enhance access to financial services.

Conversely, former President Donald Trump vowed to terminate what he calls an "unlawful and un-American crackdown" on the U.S. crypto industry and publicly supports a crypto project, World Liberty Financial.

> “Obviously, Trump came out early and very aggressively in pro-crypto and said he's the crypto president,” Garlinghouse remarked.

Garlinghouse also acknowledged Harris's tech background, stating, “Kamala Harris is from Silicon Valley. She has generally been pro-technology over the years,” although he added she has been relatively quiet on crypto.

Money Flow

Digital asset firms are backing pro-crypto political candidates financially. Earlier this year, Ripple contributed another $25 million to the political action committee Fairshake, similar to donations made by Coinbase and Andreessen Horowitz. In August, Ripple co-founder Chris Larsen donated $1 million in crypto to a PAC supporting Harris.

Garlinghouse, critical of Massachusetts Senator Elizabeth Warren, endorsed her opponent, John Deaton, during DC Fintech Week, mentioning he has also donated to Deaton’s pro-crypto campaign.

Democrat Warren has criticized the crypto industry and is behind an anti-money laundering bill that would extend Bank Secrecy Act requirements, including KYC rules, to miners, validators, and wallet providers. Deaton, a Republican, has openly criticized U.S. Securities and Exchange Commission Chair Gary Gensler and had filed a petition in 2021 contesting the SEC's assertion that XRP is a security in its case against Ripple.

Ripple has faced legal battles with the SEC since 2020 when the agency accused the company of raising $1.3 billion through XRP sales, which it categorizes as an unregistered security. The ongoing case had a partial win for both parties after a New York judge's decision, which the SEC appealed earlier this month.