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Crypto Industry Faces Exodus from U.S. over ‘Confusing’ Rules, Says Ripple CEO



Crypto Industry Faces Exodus from U.S. over 'Confusing' Rules, Says Ripple CEO

In an exclusive interview with CNBC, Ripple CEO Brad Garlinghouse expressed concerns over the “confusing” regulations in the United States, predicting that more crypto companies will choose to relocate outside the country. Garlinghouse pointed to Europe, the UAE, the UK, and Singapore as regions providing clear regulatory frameworks for digital assets, especially cryptocurrencies, attracting entrepreneurial talent and investment.

Garlinghouse’s remarks came on the heels of Ripple’s announcement of its acquisition of Metaco, a Swiss crypto custody services firm.

The move is expected to bolster Ripple’s product offerings and grant access to a desirable client base that includes renowned institutions such as Citi and BNP Paribas. Garlinghouse emphasized the suitability of the acquisition, stating that Metaco aligns perfectly with Ripple’s current customer growth strategy.

Crypto Firms Ponder Leaving US as a Warning to Regulators, Ripple Being a Potential Leader Among Them

Amidst fears of missing out on technological innovation, several crypto firms have expressed intentions to depart from the US, aiming to send a clear message to regulators. Ripple finds itself entangled in a legal battle with the US Securities and Exchange Commission (SEC), accused of violating securities laws by selling XRP without prior registration.

Similarly, Coinbase, a prominent crypto exchange, initiated legal action against the SEC after the regulator’s prolonged silence regarding the company’s petition on extending securities regulations to the crypto industry. Additionally, the US government has accused Binance, the world’s largest crypto exchange, of non-compliance in soliciting American customers.

White House Slowly Puhsing Crypto Away.

Garlinghouse attributed the prevailing confusion in US regulations to the SEC, emphasizing that the country has made it as convoluted as possible for the crypto industry to navigate. This environment has compelled companies like Ripple to invest heavily outside of the US, with 95% of Ripple’s customers being non-US entities and most of its upcoming hiring initiatives taking place abroad.

Garlinghouse reassured stakeholders that Ripple possesses a robust financial position, highlighting the company’s use of $250 million in cash from its own balance sheet to fund the Metaco acquisition. He reiterated Ripple’s proactive stance, referring to billionaire investor Warren Buffett’s adage: “Be greedy when others are fearful and be fearful when others are greedy.”

Regarding listing plans, Garlinghouse stated that Ripple is not in a rush and has no immediate need to raise additional capital, emphasizing that any listing decision would be driven by enhancing the business and customer experience.

In summary, Ripple CEO Brad Garlinghouse’s interview shed light on the growing trend of crypto firms seeking regulatory clarity and investment opportunities outside of the US. He cited the confusion surrounding US regulations and the proactive steps taken by Ripple, including the Metaco acquisition, as the company strategically expands its reach and reinforces its strong financial position.