Brad Garlinghouse, the chief executive officer of the blockchain company Ripple, believes that more crypto firms and businesses will leave the United States because of the country’s confusing regulations.
During an interview with CNBC, the CEO said that the confusion in the country will push traders and crypto investments to other friendly regions such as Europe, the United Arab Emirates (UAE), the United Kingdom, and even Singapore. .
Regulatory Confusion in the US
Garlinghouse noted that Europe, the UAE, and the UK have provided clarity and leadership in regulating digital assets, and their efforts have allowed founders and investors to engage effectively with regulators and authorities. He pointed out that Europe is the beneficiary of America’s current situation.
“I think it’s fair to say that the US is making it as confusing as possible as to what the rules of the road are for the crypto industry. As you describe, the US SEC is really at the forefront of that confusion. Unfortunately, that encourages companies like Ripple to invest more outside the US,” the Ripple CEO said.
Garlinghouse’s comments come as US regulators, particularly the Securities and Exchange Commission (SEC), crack down on crypto companies. The SEC is currently in a legal battle with Ripple due to alleged violations of securities law in the offering and sale of XRP – the native cryptocurrency of the Ripple network.
The securities regulator also asked a US 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 the crypto firms refuse to consider it.
Ripple in a Strong Financial Position
Regarding the recent acquisition of Swiss-based crypto custody firm Metaco, Garlinghouse believes that the company fits perfectly into Ripple’s expansion plans. The investment, which makes 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 strong financial position as it is funded by the $250 million Metaco purchase from its balance sheet. He added that Ripple is currently leaning back and playing offense, and the acquisition is an example of that.
Meanwhile, Ripple is in no rush to become a publicly traded company or raise capital yet, according to Garlinghouse.
“So if we consider [to list]it’s at a time and place that makes sense,” he added.
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