June 8, 2023

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Ripple is looking at international expansion due to unclear crypto regulations in the US

Ripple is looking at international expansion due to unclear crypto regulations in the US

Confusing regulations in the US will prompt more crypto companies to leave the US. According to an exclusive interview with the CEO on CNBC, blockchain services provider Ripple is considering investments and hiring employees outside of the United States.

Europe as a haven

Above he explained:

“Europe is leading the way with countries like the United Arab Emirates. These countries are creating clear rules to regulate digital assets. By being transparent, entrepreneurs and investors can follow the rules and work with regulators to shape the crypto world.

“Because of the lack of clarity in the US, you see entrepreneurs and investors going 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 finding the rules governing the crypto industry as confusing as possible. The SEC is really at the forefront of that mess.”

Cases due to unclear regulations

Crypto companies have threatened to leave the US, a signal that the country could be missing out on a major technological innovation.

Ripple is currently embroiled in a lawsuit with the US Securities and Exchange Commission. The SEC accused Ripple, Garlinghouse, and co-founder Chris Larsen of violating securities laws by selling XRP without first filing with the SEC. XRP is the crypto token of Ripple Network.

In April, crypto exchange Coinbase took legal action against the SEC after months of failing to respond to Coinbase’s request to set rules for the crypto industry.

Binance, the world’s largest crypto exchange, has been accused by the United States of violating compliance rules to attract American customers.

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When asked about the bankruptcy of crypto firm FTX, Carlinghouse said that “what happened to FTX is considered fraudulent” and “not specific to the crypto industry.”

The future of ripple

In order to ensure Ripple’s financial stability, Carlinghouse insisted that it fully self-financed the purchase of Metaco, with $250 million of capital from its own reserves.

“Ripple is in a strong financial position,” he said. “We are very assertive in the market right now, taking advantage of the opportunities that come our way. The Metaco acquisition is a good example of this.

Regarding potential plans for an IPO, Carlinghouse said there is no urgency or pressure to go public. Nor are they looking for additional capital.

“Thinking about an IPO only happens when it makes strategic sense. We will only take that step if we believe it will lead to a tangible improvement to the company and the customer experience,” he added.