According to Brad Garlinghouse, the CEO of Ripple, due to unclear regulations in the US, more crypto businesses and firms will leave the country. During an interview with CNBC, he stated that this confusion would drive crypto entrepreneurs and investments towards other countries such as Europe, the United Arab Emirates (UAE), the United Kingdom, and Singapore.
Regulatory Confusion in the U.S.
Garlinghouse emphasized that Europe, the UAE, and the UK are offering more clarity and leadership in regulating digital assets. Their efforts allow founders and investors to engage more constructively with watchdogs and authorities, and Europe is a beneficiary of the current situation in the US.
“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.,” said the Ripple CEO.
Garlinghouse’s comments come as the SEC is cracking down on crypto companies, including Ripple, over alleged securities laws violations in the offering and sale of XRP.
Ripple in a Strong Financial Position
About Ripple’s recent acquisition of Swiss-based crypto custody firm Metaco, Garlinghouse believes the firm fits well with Ripple’s expansion plans. The investment has expanded Ripple’s suite of products and given it access to an attractive clientele. Ripple funded the $250 million Metaco purchase from its balance sheet, and according to Garlinghouse, Ripple is in a solid financial position. Garlinghouse also disclosed that Ripple is neither in a hurry to become a publicly traded company nor to raise more capital.
“So if we were to consider [to list], it would be at a time and place that made sense,” he added.
