- The CEO of Ripple has warned of a possible exodus of crypto firms to Europe amid ongoing regulatory action.
- An American blockchain services company has expanded its global presence with the acquisition of a Swiss cryptocurrency startup.
- Garlinghouse praised Europe, the United Arab Emirates, the United Kingdom and Singapore for their clear digital asset rules.
In an exclusive interview with CNBC, ripple CEO Brad Garlinghouse They expressed concerns about confusing regulations in the US, and predicted that such ambiguity would lead more crypto companies to look for opportunities outside the country.
Garlinghouse praises digital asset regulations in other countries
Garlinghouse acknowledged the leadership provided by Europe, as well as countries such as the United Arab Emirates, the United Kingdom and Singapore, in introducing clear regulatory frameworks for digital assets.
He emphasized that well-defined rules enable entrepreneurs and investors to deal constructively with regulators. The CEO also noted that the lack of regulatory clarity in the US has led to an outflow of entrepreneurship and investment to other jurisdictions, benefiting Europe in particular.
Garlinghouse’s comments follow the recent acquisition of Ripple Metako, a Swiss custodial services company. The move coincides with increased scrutiny from US regulators targeting companies like Ripple and Coinbase.
“I think it’s fair to say the U.S. has made it as confusing as possible as to what the rules of the road are for the crypto industry. The SEC has really been at the forefront of that confusion.” Garlinghouse stated.
Ripple’s CEO cites the SEC as the reason crypto companies are leaving the US
Garlinghouse pointed to the confusing nature of regulations in the United States, suggesting that the SEC (SEC) plays an important role in generating this uncertainty. This regulatory ambiguity has prompted cryptocurrency firms to consider moving to signal to regulators about the potential loss of technological innovation within the country.
Ripple itself is currently involved in a file lawsuit It was filed by the SEC, claiming that the company, Garlinghouse, and co-founder Chris Larsen violated securities laws by selling XRP without registering it with the SEC.
“Unfortunately, [the crackdown] has encouraged companies like Ripple to invest more outside of the U.S.” Garlinghouse stated.
XRP acts as the native cryptocurrency on the Ripple network. Garlinghouse lamented that the crackdown on crypto companies has forced Ripple to focus more on investments outside the US.
95% of Ripple’s clients are non-US entities
When asked about the recent bankruptcy of the crypto giant FTXGarlinghouse classified the event as a scam, emphasizing that it is not exclusive to the cryptocurrency industry. He reiterated the confusion surrounding the US regulatory landscape and how it has led companies like Ripple to prioritize investments abroad.
Garlinghouse revealed that 95% of Ripple’s clients are non-US entities and that most of the company’s hiring efforts this year will take place outside the US.
on the flip side
- While Ripple highlights the leadership that Europe and other countries are providing in regulating digital assets, it is important to realize that different jurisdictions have different approaches and priorities when it comes to crypto regulation.
- Cryptocurrency firms’ decision to invest outside the US may be driven by a combination of regulatory factors and their strategic goals rather than just the confusing nature of US regulations.
- While Ripple claims that most of its clients are non-US entities, it is worth considering the possible reasons behind this distribution and its impact on the company’s operations within United State.
Why is this important
The growing number of crypto companies considering relocating from the US due to confusing regulations highlights the urgent need for clear and comprehensive regulatory frameworks in the country.
As Europe and other jurisdictions provide greater regulatory clarity, the US risks missing out on key technological innovations and losing its position as a major player in the crypto industry.
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