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FameEX Hot Topics | Ripple CEO Points Out How 'Confusing' US Crypto Regulations Benefit Europe

2023-05-23 17:00:31

During an interview with CNBC, Ripple CEO Brad Garlinghouse highlighted that Europe has benefited significantly from the unclear crypto regulations in the United States. This has led Ripple and other firms to seek investment opportunities outside the country. Garlinghouse stressed the importance of the U.S. emulating nations like the United Kingdom, Singapore, and the United Arab Emirates, which have established clear guidelines for crypto regulation.

The confusion arising from the Securities and Exchange Commission's (SEC) crackdown on cryptocurrencies has compelled Ripple to limit its interactions with U.S. companies and citizens. As a result, a majority of Ripple's customers (around 95%) are now based outside the U.S., and the company plans to predominantly hire non-U.S. staff this year. This strategic shift reflects Ripple's aim to navigate the regulatory landscape more smoothly by focusing on regions that offer clearer guidelines.

Garlinghouse expressed enthusiasm about Ripple's recent acquisition of Swiss crypto startup Metaco, describing it as an ideal fit for Ripple's target customer base and aligning with their strategic objectives. The acquisition, valued at $250 million, not only strengthens Ripple's global presence but also provides access to top-tier clients, including major financial institutions like BNP Paribas, Citi, and Societe Generale.

In light of the collapse of the crypto exchange FTX, Garlinghouse discussed the ideal regulatory framework going forward. He suggested that U.S. regulators draw inspiration from countries such as the United Kingdom, the United Arab Emirates, and Singapore, which have taken steps to provide clarity in regulating digital assets. By doing so, these nations have fostered an environment where entrepreneurs and investors can engage constructively with regulatory authorities. Garlinghouse emphasized that regulatory clarity is essential to promote innovation and enable the thriving of the crypto industry.

Garlinghouse's remarks shed light on the challenges faced by Ripple and other crypto firms operating within the United States due to the lack of regulatory clarity. As a result, Europe has become an attractive destination for crypto investments. Garlinghouse's insights underline the necessity for the United States to establish a more definitive regulatory framework to remain competitive and encourage the growth of the rapidly evolving crypto industry.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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