More Crypto Firms Will Leave The US Due to Confusing Regulations: Ripple CEO

Brad Garlinghouse, the chief executive officer of blockchain company Ripple, believes more crypto firms and businesses will leave the United States due to confusing regulations in the country.

During an interview with CNBC, the CEO said the confusion in the country would push crypto entrepreneurs and investments into other friendly regions like Europe, the United Arab Emirates (UAE), the United Kingdom, and even Singapore.

Regulatory Confusion in the U.S.

Garlinghouse noted that Europe, the UAE, and the U.K. are providing clarity and leadership on regulating digital assets, and their efforts allow founders and investors to engage constructively with watchdogs and authorities. He asserted that Europe is a beneficiary of the current situation in America.

“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. As you described, the U.S. SEC has really been at the forefront of that confusion. Unfortunately, that has encouraged companies like Ripple to invest more outside of the U.S.,” the Ripple CEO said.

Garlinghouse’s comments come as U.S. regulators, particularly the Securities and Exchange Commission (SEC), are cracking down on crypto companies. The SEC is currently in a legal tussle with Ripple over alleged securities laws violations in the offering and sale of XRP – the native cryptocurrency of the Ripple network.

The securities regulator has also asked a U.S. court to deny a petition from digital asset exchange Coinbase to establish comprehensive rules for the nascent industry, insisting that existing regulations are clear but crypto firms have refused to consider them.

Ripple in a Strong Financial Position

Regarding the recent acquisition of Swiss-based crypto custody firm Metaco, Garlinghouse believes the firm perfectly fits Ripple’s expansion plans. The investment, which has made Garlinghouse’s company the sole shareholder of Metaco, will expand Ripple’s suite of products and give it access to an attractive clientele.

The Ripple CEO further disclosed that the company is in a solid financial position as it funded the $250 million Metaco purchase from its balance sheet. He added that Ripple is currently leaning in and playing offense, and the acquisition is an example of that.

Meanwhile, Ripple is neither in a hurry to become a publicly traded company nor raise more capital, according to Garlinghouse.

“So if we were to consider [to list], it would be at a time and place that made sense,” he added.

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newsby.top • 2023