Garlinghouse expressed concerns about the current regulatory environment under the Biden administration, which he believes has been unhelpful for the growth of digital currencies. Instead, he looks back to the time when Donald Trump was president, suggesting that the crypto industry had a more favorable outlook under his leadership, especially in terms of clear regulations and support for innovation.

The Optimism of a Trump Presidency for Crypto

Garlinghouse was candid about his frustrations with the current lack of clarity around cryptocurrency regulations in the U.S. He believes that, under Trump, the crypto industry saw more support, leading to an era of growth for digital assets. He emphasized that, while the industry has faced significant hurdles in recent years, there is hope that Trump’s return to office could bring a fresh approach to crypto regulation that would benefit both established companies like Ripple and new entrants to the space.

“I’m very optimistic about the future of crypto, especially if we see clearer regulations under the next administration,” Garlinghouse said. “The Trump administration had a much more supportive stance on crypto, which is why we saw some of the most significant growth during that time.”

Under Trump, Garlinghouse noted, there were strong indications that his administration would help create a friendlier regulatory environment for digital assets. Crypto leaders were hopeful that Trump’s policies would offer the clarity they needed to grow within the U.S. market. Garlinghouse suggested that a potential second term for Trump could provide a clearer, more structured approach to crypto regulations.

Ripple’s Global Reach Despite U.S. Challenges

Ripple’s operations are not solely focused on the U.S. market. In fact, more than 95% of Ripple’s business takes place outside the United States. This is partly due to the ongoing legal battle Ripple has faced with the U.S. Securities and Exchange Commission (SEC) over its cryptocurrency, XRP. The SEC claims that XRP should be classified as a security, which has complicated Ripple’s efforts to expand within the U.S.

Garlinghouse made it clear that while Ripple has been successful internationally, it has had to contend with the ongoing uncertainty regarding the legal status of XRP in the U.S. He noted that clear, comprehensive regulations would help Ripple and other U.S.-based companies make the most of the opportunities available in the crypto market.

“We’ve seen a lot of success outside of the U.S.,” Garlinghouse explained. “But to see the full potential of the crypto industry in the U.S., we need clarity on regulations. Right now, that’s the biggest challenge we face.”

Despite these regulatory hurdles, Garlinghouse remains hopeful. He believes that if the U.S. can adopt clear and crypto-friendly regulations, the country can become a global leader in the digital currency market once again.

Trump’s Pro-Crypto Stance and Future Policy Changes

Garlinghouse believes that Trump’s pro-crypto stance could provide a foundation for future growth. Before leaving office, Trump made appointments that many in the industry saw as favorable toward cryptocurrency. For instance, Howard Lutnick, a key figure in Trump’s transition team and a known supporter of crypto, is expected to play a role in the next administration, potentially as Secretary of Commerce.

This move, Garlinghouse believes, could signal a more favorable regulatory environment for digital assets under a second Trump term. According to Garlinghouse, having individuals who understand the crypto industry in key positions could lead to better policies and greater support for the sector.

“There’s hope that a second Trump administration will bring in the right people who understand the crypto market and will work to make regulations clearer,” he added.

The Need for Clearer Crypto Regulations

One of Garlinghouse’s biggest concerns is the ongoing lack of clear rules around cryptocurrency. The current regulatory uncertainty, especially in the U.S., has made it difficult for companies to innovate and grow at the same pace as their international counterparts. Garlinghouse emphasized that the U.S. is at risk of losing its leadership role in the digital currency space if clearer regulations are not introduced soon.

“We need to see clear rules for the crypto industry. This isn’t just about Ripple – it’s about the entire industry,” Garlinghouse said. “The uncertainty is holding back innovation, and it’s time for regulators to provide clarity.”

Despite the challenges, Garlinghouse remains confident in the future of the crypto market. He believes that with the right regulatory framework, the industry can thrive, and companies like Ripple will have the opportunity to lead the way in shaping the future of digital finance.

Conclusion: A Hopeful Future for Crypto

Garlinghouse’s comments reflect the optimism and frustrations many in the cryptocurrency industry feel today. While the U.S. market presents significant opportunities, the lack of regulatory clarity has made it difficult for companies to capitalize on these opportunities. If the U.S. adopts clearer, more supportive regulations under a future administration, the crypto industry could see an era of growth and innovation that benefits both domestic and global markets.