Ripple CEO Garlinghouse predicts that the U.S. will become more pro-crypto regardless of the election outcome.

Brad Garlinghouse, CEO of Ripple Labs, has expressed skepticism towards crypto regulation in the U.S. However, he is feeling highly optimistic about the post-election environment.

According to him, this election is crucial, but he believes that regardless of the outcome, we will have a more pro-crypto and pro-innovation Congress than ever before, as he stated in a Wednesday conversation with CNBC at DC Fintech Week.

Ripple, a well-established company in the crypto industry, has a global payments business that primarily serves banks and financial institutions. Approximately 95% of its business occurs outside of the U.S., according to Garlinghouse, who attributes this partly to the challenging political climate in Washington.

In 2020, the U.S. Securities and Exchange Commission filed a lawsuit against Ripple. However, in 2021, the company achieved a significant victory for the industry when a judge ruled that XRP is not a security when sold to retail investors on exchanges.

Garlinghouse advised fintech startups to expand their operations beyond the United States on Wednesday.

Despite his current concerns, he remained optimistic about the future of the industry.

"If someone doesn't believe that we will always end up in a better place, regardless of the circumstances, they are not paying attention. In 10 years, when we look back on how the U.S. got it wrong for years, it will be a speed bump, but this industry will continue to thrive."

An approaching 'reset'

At least $45 million has been donated to the Fairshake pro-crypto political action committee by Ripple, and Chris Larsen, co-founder of the company, recently donated $11 million to Vice President Kamala Harris' campaign. Garlinghouse stated on Wednesday that he wore a purple tie intentionally.

"Trump was the first to come out and aggressively promote cryptocurrency, declaring himself the "crypto president," while Harris has been more cautious and nuanced in their approach, with some of their most constructive comments coming this week."

"Kamala Harris, who hails from Silicon Valley, has generally been pro-technology throughout her career. Although she has been relatively quiet on the topic, I believe we will witness a reset regardless of the outcome."

The crypto industry's sentiment has become increasingly polarized, despite its previous support for bipartisan cooperation on crypto issues in Congress. Pro-crypto voters worry that the Harris campaign may continue the "attack" on crypto, as Garlinghouse described it.

"Regardless of the outcome, we will leave behind a failed strategy from the Biden administration," he stated. "This has been an assault, and it's not just the SEC. The [Office of the Comptroller of the Currency] and the Treasury are both hostile towards crypto."

Banks are increasingly refusing to work with crypto businesses, as many in the industry call it "Operation Chokepoint 2.0," a term that refers to an Obama-era initiative that discouraged banks from serving risky but legal enterprises, such as payday lenders and online gambling businesses.

"Garlinghouse stated that the administration is hostile, and regardless of the outcome of the next election, there will be a reset. Although there may be disagreement about the extent of the reset, progress will be made, and Garlinghouse is excited to see it happen."

John Deaton, an attorney running to unseat Sen. Elizabeth Warren, has received Garlinghouse's endorsement. Warren has been critical of the crypto industry and seeks more oversight in the space.