Brad Garlinghouse, CEO of Ripple, said that confusing regulations in the US will push more crypto companies to leave the US because firms like Ripple are trying to recruit and invest outside the country.
Ripple's CEO Says Crypto Firms Will Leave US
“Europe has really provided leadership and countries like the UAE are likewise. Even the UK and Singapore are providing clarity on how to regulate these digital assets,” Ripple CEO Brad Garlinghouse said in a statement today.
"This ensures that rules are enforced that allow entrepreneurs, investors to interact constructively with regulators," Garlinghouse said on CNBC's "Squawk Box Asia."
"Obviously, that's why you see entrepreneurship and investment flowing into other areas. Europe has certainly benefited significantly from the confusion that exists in the United States," he said.
These comments come at a time when U.S. regulators are putting harsh pressure on companies like crypto exchange Coinbase, after the crypto firm announced Wednesday that it had acquired Metaco, a Swiss crypto custody services firm.
It would be fair to say that it makes it as confusing as possible what the US rules are for the crypto industry. The SEC has indeed been at the forefront of this confusion.
Crypto firms are threatening to leave the US in an attempt to send a signal to regulators that the country may miss out on an important technological innovation.
In April, Coinbase took legal action against the SEC after months of silence on the crypto exchange's petition regarding whether its existing securities rulemaking processes could be extended to the crypto industry in July 2022.
*Not investment advice.