Brad Garlinghouse, CEO of Ripple, reiterated his concern about the lack of clarity of regulations by the US Securities and Exchange Commission.
Earlier, both Garlinghouse and Ripple CTO Chris Larsen had expressed a desire to leave the United States because they found it stifling conditions.
More recently in one CNN interview, Garlinghouse said little has changed. And since there are no clear SEC guidelines, US investors are careful when investing in XRP.
Using the growth of the Internet as an example, Garlinghouse said that during the burgeoning phase of Internet development, a clear legal framework paved the way for US Internet companies to grow and dominate.
“We have certainly seen that in the Internet age, the US had a clear legal framework over twenty years ago. That made it possible for investors to make these investments. “
But now, in the case of cryptocurrency, it is overseas regulators who are driving growth through clear regulation.
Garlinghouse fears that the U.S. cryptocurrency industry will continue to lose ground without regulatory security.
In particular, he’s frustrated that XRP is facing challenges that neither Bitcoin nor Ethereum apply.
Ripple violates that Bitcoin and Ethereum get a passport
In June 2018 SEC Director William Hinman gave a speech at the Yahoo Finance All Markets Summit in which he stated that Bitcoin and Ethereum are not securities.
To establish this, Hinman made several important points related to the Howey test. His verdict came to the conclusion that both Bitcoin and Ethereum are decentralized.
“But this also shows the way if a transaction with digital assets may no longer be a security offer. If the network on which the token or coin is supposed to function is sufficiently decentralized – if buyers would no longer reasonably expect an individual or group to undertake significant management or business efforts – the assets may not constitute an investment contract. “
From today’s perspective, the SEC has not issued a judgment on whether or not XRP is a security.
Garlinghouse said if you have this uncertainty, investors and developers are afraid to get on board. This is not the case in certain overseas markets where the clarity of regulations encourages crypto development in the locale.
“Today here in the US we are not in line with some of the other G20 markets around the world. In the UK, Singapore or Japan you had this regulatory clarity. “
To illustrate this point, Garlinghouse dropped a bombshell by saying 95% of Ripple’s customers were non-US customers. Then the company has many potential US customers who are just waiting on the sidelines for the SEC to make a call.
With that in mind, it’s understandable why Ripple is looking to move abroad.
Source: XRPUSDT on TradingView.com