Ripple CEO Says Crypto Industry Has to Rebuild Trust

[Hydrogen]

Ripple CEO Brad Garlinghouse has taken to Twitter to share his thoughts on the state of the crypto industry in the United States, stating that the industry needs to rebuild trust through both utility and transparency.

In a tweet on March 7, Garlinghouse said that the industry needs to move forward together, adding that this can only happen through transparency and utility.

He cited companies like FTX and Terra as examples of firms that shattered trust in crypto.  

However, Garlinghouse also pointed out that the industry is facing significant headwinds, with the Securities and Exchange Commission (SEC) declaring war on crypto. He criticized SEC Chair Gary Gensler's call for firms to register, saying that there is no infrastructure in place for a "registered token" to trade and no clarity on what these tokens are.

The Ripple boss also called on regulators to regulate the industry properly, saying that many other G20 countries are already building frameworks and setting guidance. He cited the EU's markets in crypto-assets (MiCA)  regulations as an example of what the US could do.

As reported by U Today, Garlinghouse recently stated in an interview with Bloomberg that he expects a decision on the XRP lawsuit with the SEC to be made this year. The Ripple CEO emphasized the importance of the lawsuit, which could have far-reaching impacts on the entire cryptocurrency industry, and criticized the SEC's approach to crypto regulation.

He also stated that the case was not really about Ripple or XRP but rather how the SEC was attacking the entire industry. The outcome of the lawsuit will set the stage for how crypto will be regulated in the U.S. and will be pivotal for the entire industry.

https://u.today/ripple-ceo-says-crypto-industry-has-to-rebuild-trust

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It would be interesting to know whether most blame the crypto industry for negative fallout in 2022. Or whether most would hold a small number of bad actors responsible for cryptos big downturn. Is it perceived as an industry wide systemic fault. Or the actions of a few rogue individuals working alone, who may have made a few questionable decisions along the way.

Prior to the 2008 economic crisis and the US real estate market crash. It was unthinkable that such a financial crisis could occur on american soil. Everyone was taken by surprise and few were prepared. I think the last big american economic crisis had occurred during the 1970s and was close to 40 years removed. There has been a major shakeup of social norms and prior precedents, concerning US finance. Bucking decades of previous positive trends.

Given current economic conditions, is it fair to say that the #1 priority for most is searching for a viable exit strategy. Which would allow them to escape negative fallout associated with rising costs of living. Given our current and likely future obstacles, our environment appears to be one where rebuilding trust would be a difficult venture. Is there a likely scenario where a blueprint for this can be created.

If our goal is to rebuild the public's faith and confidence in crypto, what would be our 1st step?

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[Nwada001]

If our goal is to rebuild the public's faith and confidence in crypto, what would be our 1st step?

The crypto space doesn't really have anything to do to build trust. The centralized exchanges that have broken the trust of the public are the ones who need to look for a way to build it back, but I doubt that will be possible again. The real crypto believers don't need anyone to convince them to have trust over what they already have. To me, the work to be done here is left for projects like Luna and FTX, who mismanaged public funds over their own interests; they have more work to do to convince the Sec and other governments that they can be trusted again, assuming they still have the intention of coming back strong under the same name. 

[retreat]

The crypto space is a very good market with good development and a lot of potential to grow in the future. This market no longer needs to build trust for investors because this market is already trusted enough in terms of security, architecture, and systems. What needs to be built on trust are the players who often take advantage of the crypto market for their personal interests and cause losses for many people.

What's more, are the forex and stock markets reliable? In my opinion both markets are not much better than crypto, because there are also many players in these markets who cheat their customers, money laundering and many other crimes.

So instead of commenting on the crypto market to build trust, Ripple CEOs should instead focus on being able to improve their product and provide better crypto products to users or they could try to educate CEOs of other crypto platforms or other stakeholders to stay on the road and not mess around.

[Don Pedro Dinero]

If our goal is to rebuild the public's faith and confidence in crypto, what would be our 1st step?

The first step that I would like to see is not going to happen, and that is that the 22,000 altcoins will go to hell, so there will be no more 'crypto industry' and only bitcoin will remain. All the problems of 2022 come from ponzi schemes set up with shitcoins or the use of bitcoin away from Satoshi's original idea, that is, leaving it in centralised entities that set up a ponzi like FTX or by using leverage.Although I am a realist and I know that this is not going to happen, but at least the SEC has already made it clear that bitcoin is a commodity and the 22,000 altcoins are securities. How the 'crypto industry' will have to be reconstructed if we refer to securities doesn't really matter to me.

[Outhue]

With true decentralization, there is no need to build any trust, 100% decentralization is an auto trust builder,  this is what makes Bitcoin the better digital currency.

There is never going to be strong trust between crypto adopters and centralised projects, this is the problem that keep dragging crypto through the dirt.

The major problem with crypto is from centralised projects and exchanges, I don't know why people haven't learnt their lesson, by now,  the trading volume on centralized exchanges should be 90% down and move to decentralized perp platforms.  I am still surprised that this is not the case.

[NotATether]

If our goal is to rebuild the public's faith and confidence in crypto, what would be our 1st step?

Put SBF in jail, that will show people that we are actually serious about regulation.

The fact is that people think in this industry, people can scam others at will and get away with it without even a slap on the wrist.

So it's just a bunch of empty words as many of these firms are in a position to say that the industry has to do "XYZ" but has no means or power to effect it.

[hugeblack]

Ripple is the company that will benefit the most from regulation because their business model is completely centralized and will target lower fees between transfers similar to what happens in central banks, so maybe regulation will remove a lot of competitors for them.

I do not think that you need to rebuild confidence because when the price rises, everyone will return to trading again, and when the price collapses, they will find an excuse, as it was in the past, of Bitcoin being a bubble or a Ponzi scheme.

This does not preclude the development of regulations for Cexs.

[darkangel11]

IMO Ripple CEO and his whole company are lacking trust and were lacking it from the start, when they launched they shitcoin.

First of all, Ripple is a security, while bitcoin is a commodity, so XRP has some real problems on its hands at the moment. Then there's a problem of Ripple dumping its tokens to cover Brad's wage, which isn't small. Makes me wonder if the Ripple holders are OK with generously supporting Ripple's board every month, or maybe they aren't aware why the price of Ripple is tanking so hard that it's lower today than it was in 2018.

[davis196]

Prior to the 2008 economic crisis and the US real estate market crash. It was unthinkable that such a financial crisis could occur on american soil. Everyone was taken by surprise and few were prepared.

It's funny how most economic and financial disasters are done by the governments and the central banks, but after a financial/economic disaster strikes, all the government officials and central bankers start shouting "more regulations, more government control!"
The 2008 crisis was created by the financial deregulation and the "easy money" monetary policies of the Federal Reserve.
Anyway, back to the subject. Ripple isn't a cryptocurrency. Ripple is a company. It has a CEO. This is hilarious. His opinions about crypto are no different than the opinion of a fiat banker.
The crypto industry needs better regulations, not more regulations. The scam shitcoins and scam crypto companies have to be wiped out of the crypto world. Unfortunately, we can't do this by ourselves. The governments have to step up, but I'm not optimistic about the crypto world having better regulations anytime soon.

[Cryptomiles1]

If our goal is to rebuild the public's faith and confidence in crypto, what would be our 1st step?

I know too well that this was a cause of FTX collapse and terra, meaning centralized exchangers are the major threat we have in the industry, if there could be an insurance or a policy that would governed people's funds for any lost or misled of funds, i don't think any exchange would toiled with their security aspect or even bridging those laws because they knew what it means when people's funds are hacked or being stolen from their exchange.

I doubt if there is a way to build trust in this industry, the damage is much for that there would be a lot crypto coin that will go downhill or sideway. It's too open for anyone to come build their projects at last it turns to scams and one is being questioned of what happened.

[Gyfts]

If our goal is to rebuild the public's faith and confidence in crypto, what would be our 1st step?

Put SBF in jail, that will show people that we are actually serious about regulation.

The fact is that people think in this industry, people can scam others at will and get away with it without even a slap on the wrist.

So it's just a bunch of empty words as many of these firms are in a position to say that the industry has to do "XYZ" but has no means or power to effect it.

He'll being going to jail for a long time if what prosecutors allege are in fact true. Having read some details in the indictment and based on what we know publicly, his only possible defense is that he didn't know billions of dollars in user funds were being misused.

I don't think regulation is the answer. Trustless systems need to be built. Regulations just give the government an excuse to hamper crypto growth by introducing nonsensical provisions that force compliance. Very rarely is government regulation an answer. In the case of FTX, what SBF was doing was already illegal in most jurisdictions so it's not as if new regulations would accomplish much. The entirety of FTX balance sheets were corrupted.

[Ucy]

Well, the trust was meant by Satoshi to be in fraud-proof features that always follow the right rules/programs with no freewill to cheat or choose to be evil. But certain people/things weakened the features. It's like keeping a vending machine in a public or trustless environment for users, but you have to be worried about the vending machine getting corrupted or reprogrammed to cheat if it not decentralized, immutable, transparent, and allowing anyone to checks and balances it for correctness or obedience to its rules.
True cryptocurrency like Bitcoin is designed to be more trustworthy than corrupted/lawless humans who have ultimate control/power over people's assets without proper checks and balances. Satoshi came up with a way to tackle this problem by building system that should always obey the rules that guides it. Still, you have to be worried about a corrupt/lawless humans changing the rules or not following it by centralizing the system, making it opaque, mutable, Etc. Isn't that the issue with Ripple and false cryptocurrencies?

[coupable]

I doubt if there is a way to build trust in this industry, the damage is much for that there would be a lot crypto coin that will go downhill or sideway. It's too open for anyone to come build their projects at last it turns to scams and one is being questioned of what happened.

Today, the market lives in the lowest levels of confidence in cryptocurrencies, since we are still living the repercussions of the fall of the Ftx platform, which followed the collapse of the Luna network. No wonder trust in cryptocurrencies, especially among retail users, is at an all-time low.
This explains the fact that many trading platforms have disclosed more data about their financial resources and the emergence of the concept of "proof of reserve" to achieve more transparency in their activities.
On this article it was noted (without citing the source) that Coindesk mentioned in a detailed report that Binance, the world's largest cryptocurrency exchange by trading volume, is currently assembling a group of crypto companies with the aim of rebuilding trust in the industry.

[so98nn]

I’m amused this is coming from the centralised project itself who has already lost the trust of their investors due to malpractices in the past and various court appeals for undermined balance sheets. Something is not right here when you are king of untrusted stuff and make claims like these.

We do not need to rebuild anything for very long time because trust issues are with the Altcoins most of the times while bitcoin has no gain or losses since its inception in terms of trust. In fact bitcoin is the coin which is keeping that glaze of crypto space.

We lost the trust due to bombarded scam projects everywhere through altcoin chains.

[Hispo]

I can agree that the reputation or public perception most of the people could have about Bitcoin and cryptocurrency in general have been kind of stained, because the failure of projects last year.

I cannot blame them, though. We are talking a lot of money that belonged to common people searching for good projects and ended up losing it all on Terra-Luna, FTX, Blockfi, Celcius, etc. This is a problem that is correlated to the success of Bitcoin and the apparent ignorance of the newbie investor believing himself to be wise enough to spot the next trend or top altcoin or catching a "safe" source of passive income , when we already have a formula that is ideal to that kind of people who does not know much:

Bitcoin + self-custody. That should be enough to cultivate trust on oneself (as responsible manager of one's own satoshis).  

[bittraffic]

It's very hard for people to trust crypto when it's demonized by the media all the time and the government doesn't have a clear law about it.  

I think Ripple has to really win thier fight against SEC so they will finally draw the line which is security and which is not. This I guess can be the first step. The SEC itself classifying stablecoin as security is already not making crypto industry look good. While Gensler himself has a close relationship with the FTX team.  Cracking down crypto or the one they call operation Chokepoint will not give them the soft landing or the viable exit strategy as they are pushing the crypto players offshore.

[coolcoinz]

It's very hard for people to trust crypto when it's demonized by the media all the time and the government doesn't have a clear law about it.  

Then trust bitcoin, not "crypto".

There's a reason, and I agree with some of these politicians who say most crypto is a scam, because it is. Just look at the IPOs from 2017/18, most of them were scams. All the fake bitcoin cryptos were scams made to capitalize on having bitcoin in their name and being cheaper, so that the average Joe would throw some money their way.

I think Ripple has to really win thier fight against SEC so they will finally draw the line which is security and which is not. This I guess can be the first step. The SEC itself classifying stablecoin as security is already not making crypto industry look good. While Gensler himself has a close relationship with the FTX team.  Cracking down crypto or the one they call operation Chokepoint will not give them the soft landing or the viable exit strategy as they are pushing the crypto players offshore.

They can as well lose, I won't miss them. XRP was made as a bitcoin's competitor from the start. They wanted to make a more centralized bitcoin with a large pool of coins under the team's control. They thought the traditional financial system would like them more if they had a CEO and a team of lawyers, but as we can see banks don't like crypto at all and registering a company just makes you a bigger target.

[el kaka22]

Lol, he said that? First of all, Ripple has to rebuild some trust. Secondly crypto is crypto, all the things that happened were in the crypto industry but not anything with crypto itself. When luna crashed, that was an issue about luna, not crypto in general, when ftx bankrupted, that was related to ftx and not crypto itself, when anything like that happens, it is always about some company or some developers but not crypto in general.

So if you ask me, bitcoin has no trust to rebuild, it is trusted more than any other currency or investment asset in my mind, and I am sure there are millions of people in the world who agree with me on this as well.

[blockman]

The blame would go against the fall of FTX and then that's where everything has come from. But before pointing out that the entire crypto industry to regain trust, people have more faith and trust in bitcoin than any of them. So, on this thing, Brad has to focus on their company and project first to regain the trust of everyone. They should win against the SEC case before telling things as if he's the one that's giving the best advise of them all.

[South Park]

Lol, he said that? First of all, Ripple has to rebuild some trust. Secondly crypto is crypto, all the things that happened were in the crypto industry but not anything with crypto itself. When luna crashed, that was an issue about luna, not crypto in general, when ftx bankrupted, that was related to ftx and not crypto itself, when anything like that happens, it is always about some company or some developers but not crypto in general.

So if you ask me, bitcoin has no trust to rebuild, it is trusted more than any other currency or investment asset in my mind, and I am sure there are millions of people in the world who agree with me on this as well.

True, but the effects of those breaches of trust not only affected those companies but the market in general, so if a big enough actor misbehaves it can affect the rest, even if they are following the regulations put in place to the letter, and while bitcoin does not need to do anything to rebuild the trust the community has in it, as it never lost it, centralized exchanges do have a lot of work to do, otherwise their profits could be severely affected over the long term.