Ripple’s CEO holds a divergent view on potential US regulations targeting non-custodial wallets

Ripple's CEO Brad thinks "reasonable" oversight is necessary if crypto must become the underlying layer for the global financial network.

By · Dec 12, 2020 . 6min read

Ripple's CEO on non-custodial wallets latest news

Brad Garlinghouse, the CEO of Ripple, the cryptocurrency payment firm, once again in his contrarian style, has thrown his weight behind the possible regulations targeting non-custodial wallets by the US government.

Recall that Brian Armstrong of Coinbase had raised the alarm concerning this proposed regulation on self-hosted (non-custodial) wallets. Brian gave solid reasons why it’s such a bad move, especially to the US government and the financial corporations domiciled in the States. He’s also gone ahead to send a delegation to the Treasury department.

But Brad Garlinghouse thinks otherwise. In Brad’s view, there is not out of the ordinary and shouldn’t be perceived as anti-innovation.

Our industry celebrates when institutions & regulators publicly laud real use cases (ie: SEC, Treasury highlighting using crypto for payments) but balks at the idea that KYC/AML is a fundamental part of a robust financial system that protects consumers from scams/bad actors

Ripple CEO thinks “reasonable” oversight in US regulations is necessary for an efficient financial system.

Brad thinks “reasonable” oversight is necessary if crypto must become the global financial network’s underlying layer. He continued by saying,

*Reasonable* oversight is necessary if we want crypto to be the infrastructure of the next-gen financial system. With potential new US guidance for non-custodial crypto wallets, let’s not forget the end goal – to build a more inclusive & efficient financial system for all.

But as Brian Armstrong and other concerned stakeholders faulted the government’s move, it’s strongly an anti-privacy move. Brad flatly thinks otherwise

Protecting consumers has to be part of that. I’m not against privacy, I’m against bad actors taking advantage of anonymous transactions. I’ve said many, many times before KYC/AML matter for crypto to move from the fringes to an integral part of our global financial system.

Not so many find Brad’s view as sincere. The argument has been that Ripple is a centralized entity and doesn’t really represent the ethos of decentralization. And while Brad may have hinged his views on curbing thefts using crypto and bad actors like that of Silk Road and many other Darknet actors, crypto is currently serving more of legit activities than illegal ones.

It’s also not surprising for a digital asset entity like Ripple to position on this issue. Ripple continues to push to work closely with legacy banks to not advocate for strong regulations. Meanwhile, due to US regulators’ “overreaching” arms, Ripple CEO had once threatened to shift base. He hinted at a possible move of his company away from the United States. He has, however, backed down from that stance.

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