- Ripple CEO Brad Garlinghouse said in an exclusive interview with CNBC that more crypto firms may leave the US for more progressive jurisdictions like Europe if regulators continue to crack them down.
- A US blockchain services company acquired a Swiss cryptocurrency startup on Wednesday that will help the company expand its operations overseas.
- “Europe has really provided the lead and countries like the UAE…the growth you’re seeing…even the UK and Singapore, are providing clarity on how these digital assets are regulated,” Garlinghouse said.
The CEO of blockchain services company Ripple told CNBC in an exclusive interview that “confusing” regulations in the US will push more crypto firms to leave the US as companies like Ripple look to hire and invest outside the country.
“Europe has really provided the leadership and countries like the UAE…the growth you’re seeing…even the UK and Singapore are providing clarity on how these digital assets are regulated,” Ripple CEO Brad Garlinghouse said Thursday. .
“And that allows through those rules of the road that allow entrepreneurs and investors to engage constructively with regulators,” Garlinghouse said on CNBC’s “Squawk Box Asia.”
He added, “Frankly, that’s why you’re seeing entrepreneurship and investment pouring into other jurisdictions – and certainly Europe has been a big beneficiary of the confusion in the US.”
His comments come after the cryptocurrency firm announced on Wednesday that it had bought Metaco, a Swiss crypto custody services company, as US regulators crack down on companies like Ripple and exchange Coinbase.
I think it’s fair to say that the US has made it as confusing as it can get in terms of the rules of the road for the crypto industry. The SEC has been really at the forefront of this confusion.
Brad Garlinghouse
Ripple CEO
The acquisition of Metaco is expected to expand Ripple’s product portfolio and allow it to reach attractive clients including Citi and BNP Paribas.
“We believe Metaco is the perfect choice, as we try to grow our customers today,” said Garlinghouse.
Cryptocurrency companies have threatened to leave the United States in an attempt to send a signal to regulators that the country may miss out on a major technological innovation.
Ripple is fighting a lawsuit from the US Securities and Exchange Commission. The SEC has charged Ripple, Garlinghouse and company co-founder Chris Larsen with breaching securities laws by selling XRP without first registering it with the SEC. XRP is the original cryptocurrency on the Ripple network.
Unfortunately, [the crackdown] Encourage companies like Ripple to invest more outside the US
Brad Garlinghouse
Ripple CEO
“Unfortunately, this has encouraged companies like Ripple to invest more outside the United States,” Garlinghouse said, adding that 95% of Ripple’s customers are from outside the United States and that most of Ripple’s employees this year will be outside the United States.
Garlinghouse said that Ripple is in a good financial position. Ripple funded the Metaco purchase with $250 million in cash from its balance sheet, according to him.
“Ripple has a very strong balance sheet and we tend to take offense and this is just one example of that,” Garlinghouse said.
“Be greedy when others are afraid, and fear when others are greedy,” he said, quoting billionaire investor Warren Buffett.
Regarding Ripple’s plans to list, Garlinghouse said they are “in no rush to list” and “don’t need to raise capital.”
So if we think about it [to list]It will be at a time and place that makes sense. We wouldn’t want to do that unless we feel it really enhances the ability to grow the business and the customer experience.”
#Ripple #CEO #Crypto #Firms #Leave #Due #Confusing #Rules