The United States continues to lag in its approach to crypto regulation, and despite renewed hopes around the upcoming election, change in the short term is unlikely, according to Fiona Murray, Managing Director of Ripple Asia Pacific.
Speaking at Token2049 in Singapore, Murray expressed concerns about the U.S.'s slow regulatory progress and the shifting landscape that has seen innovation moving abroad.
Murray explained that much of Ripple’s business growth is occurring in Singapore, where the regulatory environment fosters blockchain development. The bulk of innovation is happening in Singapore, not the U.S., Murray noted. She highlighted a “lack of open-mindedness” in the U.S., which has driven many crypto entrepreneurs to seek more favorable conditions in Asia and other regions.
Asia Leads in Crypto Innovation
According to Murray, the Asia-Pacific (APAC) region has cultivated a “stable environment” for crypto businesses, supported by robust infrastructure and collaboration between the public and private sectors. "Banking partners in Singapore, like DBS, are really at the forefront, and they've been encouraged by regulators to work with responsible Web3 companies," she said. DBS Bank, the largest financial institution in Southeast Asia, has been instrumental in facilitating crypto transactions and fostering innovation.
Murray emphasized that effective regulation is just one piece of the puzzle. The presence of a supportive banking sector and essential infrastructure has helped to create a thriving crypto ecosystem in Asia. The “U.S. is far behind right now, but it could catch up,” she added.
U.S. Elections Unlikely to Spark Immediate Change
Despite speculation that the upcoming U.S. election could catalyze regulatory progress, Murray expressed doubt that it would be a quick fix for the crypto industry. She pointed out that even if political leaders were to embrace cryptocurrency, there would still be considerable work needed to build out the necessary banking and infrastructure support for Web3 communities.
While former U.S. President Donald Trump recently made headlines for purchasing a burger with Bitcoin in New York, Murray remains skeptical about whether this signals a broader acceptance of crypto by U.S. politicians. “I think it’s more than the elections,” she explained. "You’d have to enable all the banks to support Web3 communities and grow from there."
Future Regulatory Clarity Could Be Key
Murray remains optimistic about the future of crypto regulation in the U.S., predicting that clarity around regulations and infrastructure will eventually come. “Once that clarity is there and the infrastructure is in place, we could see major banks moving into this space," she said. According to Murray, the ability to tokenize and custody a broader range of assets would be a game-changer for the U.S. financial landscape.
Her comments come amidst the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The regulator is reportedly considering an appeal after a federal judge ordered Ripple to pay a $125 million civil penalty for allegedly selling XRP as an unregistered security. Ripple CEO Brad Garlinghouse has hailed the ruling as a major victory for the company and the wider cryptocurrency industry.
A Global Shift
As the U.S. struggles to clarify its position on cryptocurrency, other nations like Singapore are pulling ahead. Murray’s insights reflect a growing consensus that while the U.S. hesitates, the rest of the world is making strides in building the regulatory frameworks needed to support the next generation of blockchain technology.
For now, the U.S. remains a laggard in the global crypto race, but with continued pressure from industry leaders like Ripple, there’s still hope that the nation can catch up.
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