Ripple’s CEO, Brad Garlinghouse, has warned public companies and institutions in a tweet against investing in Bitcoin (BTC) as they may be forced to pay attention to new federal regulations. According to the NY Times, Biden, unlike Trump, aims to put a renewed focus on climate change and rejoin the Paris Agreement, sign implementing regulations to reduce emissions and reverse energy decisions. According to Garlinghouse, Biden could demand that all publicly traded firms including those which own Bitcoin disclose their greenhouse gas producing activities as Biden administration may consider Bitcoin harmful to the climate.
In view of this, according to Garlinghouse, the Biden administration could also focus on companies that adopt Bitcoin. The Ripple CEO refers to the ongoing adoption of Bitcoin by companies as a reserve currency, a trend that has received a lot of attention recently due to the publicly announced massive investments of MicroStrategy and Square.
In his Tweet, Garlinghouse took up the narrative repeatedly propagated by Ripple in recent weeks that BTC is harmful to the climate, while a “greener” alternative is available with the XRP Ledger and the XRP token. The Ripple CEO speculated that Biden, might have an eye on Bitcoin as it seems to be harmful to the climate and highlighted Square as a firm that need to watch out for new federal regulations. He said:
“Biden to require public companies to disclose climate change-related activities and GHG emissions in their operations. Love to see the action on climate change – first NYDFS, now this. Public companies holding BTC (ahem Square) — may want to pay attention.”
However, his statement may surprise other observers as well. Only in September, when MicroStrategy made its investment in BTC public, he described the move as “bold and brilliant”. However, the possible change in the US leadership appears to have revised his assessment.
As CNF reported, Square made headlines in October when it became known that the company had included 4,709 Bitcoins in its balance sheet holdings as an alternative to the USD. The company run by Twitter’s Jack Dorsey thus invested about 1% of its available cash in Bitcoin.
However, the first mover in the corporate adoption of BTC was MicroStrategy in August, a publicly traded technology company that adopted a staggering 38,250 Bitcoin as reserve currency as a hedge against USD inflation and has since made significant profits thanks to this recent Bitcoin rally.