rad Garlinghouse, CEO of Ripple, has openly criticized Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), for his approach to crypto regulation. During an interview at the World Economic Forum, Garlinghouse humorously suggested that the U.S. could use AI tools like ChatGPT for better regulatory insights.
SEC's Regulatory Approach Under Scrutiny
Garlinghouse points out that Gensler has focused more on legal enforcement actions rather than establishing clear regulatory guidelines. This "regulation through enforcement" strategy has led to numerous legal battles with major crypto firms, indicating a contentious regulatory environment.
The Industry's Call for Clarity
Despite the global trend towards comprehensive crypto regulations, as seen in the EU, Garlinghouse notes that the U.S. lags behind. He emphasizes that most crypto firms are eager to comply with regulations, provided they are clear and practical.
ChatGPT as a Potential Regulatory Aid
In a tongue-in-cheek comment, Garlinghouse suggests that AI, specifically ChatGPT, might offer better regulatory guidance compared to the current efforts of the SEC. This highlights the need for innovative approaches to policy-making in the crypto sector.
A New Perspective on Crypto Regulation
Brad Garlinghouse's comments reflect a growing industry frustration with the current state of crypto regulation in the U.S. His suggestion to use AI tools like ChatGPT underlines the potential for modern technology to contribute to the development of more effective regulatory frameworks. As the crypto landscape continues to evolve, it becomes increasingly important for regulators to adopt strategies that balance innovation with consumer protection.