Cryptocurrencies have had a tough time establishing itself in the globe. From being sidelined to being touted as a darknet currency, cryptocurrencies are finally seen as a major asset in the financial sector. However, the regulations for a number of digital assets remain uncertain as regulators continue to probe these currencies. Ripple has been quite vocal about how unclear and hazy the regulations have an impact on the crypto-verse.
US Regulators Favoring Chinese Technologies?
Just last week the former CEO of Ripple, Chris Larsen along with Brad Garlinghouse, the current CEO of Ripple revealed that the company was inclined towards shifting their office to a different country that had better clarity on regulations pertaining to crypto. Prolonging the same, Ripple’s Garlinghouse shared an array of tweets. While the previous statements made by the CEO were misunderstood by many, Garlinghouse clarified that Ripple was not looking to “evade US regulation.”
Pointing out that Ripple has complied with “critical laws” including BSA/AML controls, Garlinghouse suggested that Ripple was a proud company of the United States. Elaborating on the most recent issue regarding the status of crypto in the country, Garlinghouse tweeted,
“However, last week’s DOJ report lists 8 separate US reg bodies each with a different view: crypto is property, crypto is a commodity, crypto is a virtual currency, crypto is a security, etc. Regulation shouldn’t be a guessing game.”
Furthermore, Garlinghouse went on to reveal that certain regulators of the United States were actively favoring Chinese technologies over companies based in the States. He added,
“Legislation like the #DCEA can bring US companies to equal footing.”
Regulations or lack of regulations has come in the way of innovation and has been posing as a huge barrier to innovation. Following the same, Larsen had suggested that Ripple would consider moving to Switzerland, Singapore, UK, or Japan.
Garlinghouse further tweeted,
The lack of a single national regulatory framework is putting US innovation and US companies at a significant disadvantage. All we’re asking for is a level playing field – if we need to move to another country to get that, then that’s the path we will have to take. (5/5)
— Brad Garlinghouse (@bgarlinghouse) October 12, 2020
The Ripple CEO’s comment section was flooded with opinions regarding the matter. While some suggested that regulatory clarity was not limited to only Ripple and XRP, a few others highlighted how the United States has always portrayed a laid back attitude with regard to new banking products.