US crypto exodus looms as regulatory uncertainty drives firms overseas
Regulatory uncertainty in the US is pushing crypto firms and investments abroad, industry leaders have warned. Brad Garlinghouse, CEO of Ripple, and XRP advocate David Deaton both stressed the urgent need for clearer laws to prevent further capital flight. Their comments come as legal wins for XRP shift investor focus toward assets with lower enforcement risks. In a recent interview with Maria Bartiromo, Garlinghouse cautioned that the US risks losing companies and financial markets to more welcoming jurisdictions. He specifically warned against a 'Gensler 2.0' approach—referring to aggressive regulation through enforcement rather than clear rules. His remarks highlight growing frustration with the current lack of legislative direction.
Deaton reinforced these concerns, arguing that only explicit congressional action can stop a future regulator from classifying most tokens as securities by default. He also raised alarms about the potential for a US central bank digital currency (CBDC) to enable surveillance-style financial monitoring. Without new laws, Deaton claimed, such risks could become reality.
Both figures pointed to the broader impact of regulatory ambiguity. Deaton noted that Elizabeth Warren, a vocal critic of crypto, now chairs the Senate Banking Committee—a position that could shape future policy. Meanwhile, recent legal victories for XRP have already triggered a shift in capital toward assets perceived as safer from enforcement actions. The warnings from Garlinghouse and Deaton underscore a critical moment for US crypto policy. Without legislative clarity, more firms and investments may relocate to countries with clearer rules. Further legal wins could accelerate this trend, reshaping where capital and innovation flow in the digital-asset sector.
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