Confusing regulations in the US will push more crypto companies to leave the US. According to an exclusive interview with the CEO on CNBC, Ripple, a blockchain services provider, is considering making investments and hiring staff outside the US.
Europe as a refuge
On the above he explained:
“Europe is leading the way, with countries such as the United Arab Emirates. These countries do make clear rules for the regulation of digital assets. By being transparent, entrepreneurs and investors can follow the rules and work with regulators to shape the crypto world.”
“Due to the lack of clarity in the US, you see entrepreneurs and investors moving to other countries – and Europe certainly benefits from the uncertainty in the US,” he added.
He said: “It is fair to say that the US has made it as confusing as possible to figure out the rules governing the crypto industry. The SEC has really been at the forefront of that confusion.”
Lawsuits due to unclear regulations
Crypto companies have threatened to leave the US as a signal to regulators that the country could miss out on a major technological innovation.
Ripple is currently embroiled in a lawsuit with the US Securities and Exchange Commission. The SEC has charged Ripple, Garlinghouse, and co-founder Chris Larsen with violating securities laws by selling XRP without first filing with the SEC. XRP is the crypto token of the Ripple network.
In April, crypto exchange Coinbase also took legal action against the SEC after months of failure to respond to Coinbase’s request to also set rules for the crypto industry.
Binance, the world’s largest crypto exchange, has also been accused by the US of violating compliance rules to attract US customers.
When asked about the bankruptcy of crypto giant FTX, Garlinghouse said that “what happened to FTX is considered a fraud” and “is not specific to the crypto industry.”
The Future of Ripple
In his affirmation of Ripple’s financial stability, Garlinghouse stressed that with $250 million in capital from its own reserves, the company fully self-financed the purchase of Metaco.
“Ripple is in a strong financial position,” he stated. “We are seizing the opportunities that arise and are currently acting very assertively in the market. The purchase of Metaco is a striking example of this.”
Regarding possible plans for an IPO, Garlinghouse said there is no urgent need or pressure to go public. Nor are they looking for additional capital.
“Contemplating a stock exchange listing would occur when it makes strategic sense. We would only take that step if we were convinced that it would entail a concrete improvement for the company and the customer experience,” he added.