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FameEX Hot Topics | Ripple CEO Highlights 'Confusing' US Crypto Regulations as Advantageous for Europe

2023-05-23 17:00:31

In an interview with CNBC, Ripple CEO Brad Garlinghouse expressed that Europe has been a significant beneficiary of the confusing crypto regulations in the United States, which has compelled firms like Ripple to explore investment opportunities outside the country. Garlinghouse emphasized that the U.S. should follow the lead of countries such as the United Kingdom, Singapore, and the United Arab Emirates, which have provided clear guidelines on crypto regulation.

Garlinghouse highlighted that the confusion caused by the Securities and Exchange Commission's (SEC) crackdown on cryptocurrencies has led Ripple to limit its dealings with U.S. companies and citizens. As a result, the majority of Ripple's customers (around 95%) are non-U.S., and the company intends to hire predominantly non-U.S. staff this year. This shift reflects Ripple's need to navigate the regulatory landscape more smoothly by focusing on regions with clearer guidelines.

Regarding Ripple's recent acquisition of Swiss crypto startup Metaco, Garlinghouse described it as a perfect fit, aligning with the company's target customer base and strategic location. The acquisition of Metaco for $250 million not only strengthens Ripple's international presence but also grants access to top-tier clients, including major financial institutions such as BNP Paribas, Citi, and Societe Generale.

When discussing the ideal regulatory framework following the collapse of crypto exchange FTX, Garlinghouse suggested that U.S. regulators look to countries like the United Kingdom, the United Arab Emirates, and Singapore for inspiration. These nations have taken steps to clarify their approach to regulating digital assets, fostering an environment where entrepreneurs and investors can engage constructively with regulators. Garlinghouse emphasized the importance of regulatory clarity to promote innovation and enable the crypto industry to thrive.

The remarks made by Garlinghouse shed light on the challenges faced by Ripple and other crypto firms operating in the United States due to the lack of regulatory clarity. As a result, Europe has emerged as an attractive destination for investments in the crypto sector. Garlinghouse's insights underscore the need for the United States to establish a more definitive regulatory framework to remain competitive and encourage growth in 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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