Ripple CEO Says More Crypto Firms Could Exit US Due To Confusing Rules

US returned crypto rules

‘Confusing’ regulations in the US will drive more crypto businesses out of the US as firms like Ripple seek to hire and invest outside the country, service firm CEO says Ripple blockchain to CNBC in an exclusive interview.

“Europe has really provided the leadership and countries like the UAE…the growth you’re seeing…even the UK and Singapore—they’re clarifying how they will regulate these digital assets,” the CEO said Thursday. Ripple, Brad Garlinghouse. .

“And that allows through these rules of the road that allow entrepreneurs, investors to engage constructively with regulators,” Garlinghouse said on CNBC’s “Squawk Box Asia.”

“Frankly, that’s why you see entrepreneurship and investment flowing into other jurisdictions – and Europe has certainly been a big beneficiary of the confusion in the US,” he added. .

His comments come after the crypto firm announced on Wednesday that it had bought Metaco, a Swiss crypto custody company, at a time when US regulators are cracking down hard on companies like Ripple and crypto exchange Coinbase. .

I think it’s fair to say that the US has made it as confusing as possible when it comes to the rules of the road for the crypto industry. The SEC has really been at the forefront of this confusion.

Brad Garlinghouse

CEO, Ripple

The acquisition of Metaco is expected to expand Ripple’s product lineup and provide it with access to an attractive customer base that includes Citi and BNP Paribas.

“We believe Metaco is an ideal solution, from which we are trying to grow our customers today,” Garlinghouse said.

Crypto firms have threatened to exit the United States in a bid to send a signal to regulators that the country may be missing out on a key technological innovation.

Ripple is fighting a lawsuit from the US Securities and Exchange Commission. The SEC has accused Ripple, Garlinghouse and the company’s co-founder Chris Larsen of violating securities laws by selling XRP without first registering it with the SEC. XRP is the native cryptocurrency of the Ripple network.

Unfortunately, (the crackdown) has encouraged companies like Ripple to invest more outside of the US

Brad Garlinghouse

CEO, Ripple

“Unfortunately, this has encouraged companies like Ripple to invest more outside of the US,” Garlinghouse said, adding that 95% of Ripple’s customers are non-US and most of Ripple’s hires this year will be in the US. outside the United States.

Garlinghouse said Ripple is in good financial shape. Ripple financed the purchase of Metaco with $250 million in cash from its own balance sheet, according to it.

“Ripple has a very strong record and we lean and play attacking and this is just one example of that,” Garlinghouse said.

“Be greedy when others are scared and be scared when others are greedy,” he said, quoting billionaire investor Warren Buffett.

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On Ripple’s listing plans, Garlinghouse said they were “in no rush to list” and “didn’t need to raise more capital.”

“So if we were to consider (listing) it would be at a time and place that would make sense. We wouldn’t want to do that unless we felt like it actually improved the ability to develop the business, the customer experience,” he added.

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