Ripple CEO Brad Garlinghouse said U.S. crypto companies are increasingly turning to foreign jurisdictions because of the challenging domestic regulatory landscape.
“I think it’s fair to say that the US has made it as confusing as possible about what the rules of the road are for the crypto industry.”
A flurry of regulatory enforcement and regulatory uncertainty has resulted in capital and investment outflows from US shores, said Garlinghouse, who cites the EU as a major beneficiary because of this trend.
Speaking to CNBC, Ripple’s CEO laid the blame on the Securities and Exchange Commission (SEC), saying the agency had been “at the forefront of that confusion.”
Expansion abroad is the plan
Ripple has been in a legal dispute with the SEC since December 2020 over allegations of selling $1.3 billion in unregistered securities – in the XRP token.
The pending lawsuit is expected to be concluded shortly, with Garling House predicting a verdict within the next six months.
Nevertheless, Ripple has expanded its non-US business since the filing. For example, by expanding the On-Demand Liquidity (ODL) service in Japan and partnering with non-US banks such as Oman’s BankDhofar.
Garlinghouse said most of Ripple’s clients are now overseas, adding that most of this year’s new hires will focus on recruiting non-US citizens.
“95% of our clients are non-US, and this year most of our hires will be non-US for exactly the same reasons.”
Regarding Ripple’s recent acquisition of Metaco, Garlinghouse stated that the company’s operations are primarily centered in Europe, which aligns well with the type of clients sought and the jurisdictions Ripple is looking to expand into.
“We think Metaco is a perfect fit, from which we try to grow our customers today.”
Ripple acquires Swiss custodian company Metaco
On May 17, Ripple announced the acquisition of Swiss-based crypto custody company Metaco in a $250 million deal.
Through the pairing, Ripple expands its business offerings for the custody, issuance and settlement of digital assets, primarily in the European market.
Garlinghouse told CNBC that Metaco is a perfect fit for Ripple because both companies make regulatory compliance a major business focus.
Ripple CEO Points Out Regulatory Confusion As US Crypto Firms Seek Growth Elsewhere appeared first on CryptoSlate.