Brad Garlinghouse said that many other jurisdictions have done a better job than the US in providing clarity to crypto players.
During his recent interview with CNBC, Ripple CEO Brad Garlinghouse stated that more and more crypto firms are likely to leave the US amid “confusing” regulations. As a result, firms like Ripple are looking to hire and invest outside the country.
Speaking to CNBC on Thursday, May 18, Ripple CEO Brad Garlinghouse praised Europe and the UAE for taking leadership positions in establishing crypto laws. As a result, many crypto firms are willing to set up bases in these jurisdictions.
Garlinghouse also added that even the countries like the UK and Singapore are providing clarity on how they will regulate cryptocurrencies. He added that this clarity allows investors and entrepreneurs to constructively engage with the regulators. The Ripple CEO said:
“Frankly, it’s why you’re seeing entrepreneurship and investment flowing into other jurisdictions — and certainly Europe has been a significant beneficiary of the confusion that has existed in the US.”
His comments come at a time when the European Union passed the Markets in Crypto Assets (MiCA) framework earlier this week. The EU shall integrate the MiCA framework within the EU laws over the next year.
Also, Garlinghouse’s comments came on the same after Ripple acquired the Swiss crypto custodian solutions provider Metaco in a $250 million deal. The Metaco acquisition will help Ripple expand its suite of products and its footprint in the European market. Additionally, it will get access to top-tier clients such as BNP Paribas and Citi.
US Faces Crypto Exodus
As we know, Ripple has been engaged in a long-drawn battle with the US Securities and Exchange Commission (SEC) over the sales of XRP. The SEC has said that Ripple sold the XRP tokens as unregistered securities without registering with the securities regulator.
“Unfortunately, [the crackdown] has encouraged companies like Ripple to invest more outside of the US. I think it’s fair to say the US has made it as confusing as possible as to what the rules of the road are for the crypto industry. As you described, the US SEC has really been at the forefront of that confusion,” said Garlinghouse.
Ever since the collapse of the crypto exchange FTX last year in November 2022, the US SEC has initiated some stringent measures against crypto firms operating in the country. It has targeted even some of the top players such as Binance, Coinbase, and Kraken.
As a result, several crypto firms have already initiated actions to set up bases outside the US. Crypto exchange Coinbase recently secured a license to operate in Bermuda and other players are making the move too.