Ripple CEO Brad Garlinghouse criticizes the United States for deliberately creating a web of perplexing crypto regulations. In a recent interview with CNBC, Garlinghouse emphasizes that the resulting regulatory uncertainty is driving numerous cryptocurrency companies away from the country.
Garlinghouse points the finger at the U.S. Securities and Exchange Commission (SEC) for being the primary source of this confusion. He asserts that the SEC’s lack of clear guidance on cryptocurrency regulation has created significant hurdles for companies attempting to conduct business within the United States.
Europe’s Potential Amid U.S. Regulatory Confusion
Garlinghouse highlights that due to the intentionally convoluted crypto regulation in the U.S., entrepreneurs and investors have no choice but to contemplate relocating to other jurisdictions. He specifically mentioned Europe as a notable beneficiary of the adverse regulatory landscape in the U.S.
In addition to Europe, where the groundbreaking MiCA rules were recently approved, several jurisdictions, including the UAE, the UK, and Singapore, are witnessing significant growth in their efforts to seek clarity in crypto regulation. Garlinghouse emphasized that these countries’ provision of “rules of the road” and clear guidelines on digital asset regulation enable entrepreneurs and investors to engage constructively with regulators.
Ripple’s Investment Focus Shifts Overseas
Amidst the regulatory confusion in the U.S., Garlinghouse revealed that Ripple is directing more investments toward international markets. He disclosed that a significant portion, 95%, of Ripple’s customer base is located outside of the U.S. Additionally, Garlinghouse stated that the majority of Ripple’s hiring endeavors for the current year would take place beyond the borders of the U.S.
Addressing Ripple’s financial standing, the CEO expressed confidence in the company’s robust position. This statement followed the recent announcement of Ripple’s acquisition of Metaco, a Swiss crypto custody services firm. The CEO revealed that Ripple utilized $250 million from its own balance sheet in cash to fund the acquisition of Metaco.
Regarding Ripple’s potential public listing, Garlinghouse conveyed that the company is not currently rushing to be listed on a stock exchange. He explained that Ripple does not require additional capital at the moment, and any decision to go public would only be considered if it is deemed beneficial for enhancing business growth and improving the customer experience.
