Ripple CEO Garlinghouse predicts crypto 'reset' after US election, criticizes Biden administration

Crypto will see a reset no matter the outcome of the impending U.S. election, said Brad Garlinghouse, CEO of Ripple. 

Garlinghouse, donning a purple tie on stage at the 8th Annual Washington DC Fintech Week to express bipartisanship, called the current Biden administration "hostile." 

"I think no matter what happens, we're going to see a reset," Garlinghouse said in a conversation with CNBC's Tanaya Macheel on Wednesday. "We're going to see forward progress and I am certainly looking forward to that."

As elections draw closer on Nov. 5, both presidential candidates have made statements about crypto, though taking very different approaches. Vice President Kamala Harris said her  administration  would encourage innovative technologies like AI and digital assets while protecting consumers.  Last week, she said  that she "appreciates the ways in which new technologies can broaden access to banking and financial services."

Former President Donald Trump has made his own pledge to end an "unlawful and un-American crackdown" on the U.S. crypto industry and has backed a crypto project called World Liberty Financial .

"Obviously, Trump came out early and very aggressively in pro-crypto and said he's the crypto president," Garlinghouse said on Wednesday.

Garlinghouse also noted Harris' technology connections.

"Kamala Harris is from Silicon Valley. She has generally been pro-technology over the years," he said. "She has been relatively quiet on the topic."

Money flow

Digital asset firms have been funneling money to back pro-crypto political candidates. Ripple announced earlier this year that it  donated  another $25 million to the political action committee Fairshake, comparable to the money given by  Coinbase  and  Andreessen Horowitz . In August, Ripple co-founder Chris Larsen  donated $1 million in crypto to a political action committee in support of Harris. 

Garlinghouse, who has been critical of Massachusetts Sen. Elizabeth Warren, endorsed her counterpart, John Deaton, on Tuesday. During DC Fintech Week, Garlinghouse said he has also donated to the pro-crypto candidate. 

Democrat Warren has been critical of the crypto industry and has been behind an anti-money laundering bill that would extend Bank Secrecy Act requirements, including know-your-customer rules, to miners, validators and wallet providers. Deaton, who is running as a Republican, has criticized U.S. Securities and Exchange Commission Chair Gary Gensler and filed a petition in 2021 challenging the SEC's claim that XRP is a security in its case against Ripple. 

Ripple has been embroiled in a legal fight with the SEC for years. In 2020, the SEC accused the firm of raising $1.3 billion through the sale of XRP, which the agency says is an unregistered security. The case is still ongoing after a New York judge gave both parties a partial win, and the SEC appealed the court's decision earlier this month.