The United States’ confusing crypto regulations have forced firms like Ripple to consider investing outside the country, and Europe has been a “significant beneficiary” of this confusion, Brad Garlinghouse has said. The Ripple CEO suggested that the United States needs to emulate countries like the United Kingdom and Singapore which have clarified how they want to regulate crypto.
Crypto Firms Seek to Limit Exposure to US Clients and Companies
According to Brad Garlinghouse, the CEO of the blockchain firm Ripple, Europe has been “a significant beneficiary” of the confusion in the United States’ crypto industry sparked by the Securities and Exchange Commission (SEC). The confusion has in turn forced crypto firms to invest outside the U.S.
In an interview with CNBC, Garlinghouse, whose firm acquired Swiss crypto startup Metaco on May 17, warned that the SEC’s crackdown means his company will attempt to limit its dealings with U.S. companies and citizens.
“[The SEC crackdown] has unfortunately encouraged companies like Ripple to invest more outside of the United States. About 95% of our customers are non-U.S. and this year most of our hiring will be non-U.S. for those exact same reasons,” Garlinghouse said.
Metaco to Boost Ripple’s Presence Abroad
The CEO also described Ripple’s acquisition of the Swiss startup Metaco as a “perfect fit” both in terms of the type of customers as well as their location. Besides helping to bolster Ripple’s presence abroad, Metaco, which was acquired for $250 million, is expected to give the blockchain firm access to its A-list clients that include financial institutions like BNP Paribas, Citi, and Societe Generale.
Meanwhile, when asked about the ideal crypto regulatory framework post-FTX collapse, Garlinghouse suggested that the U.S. regulators should look at countries like the United Kingdom, the United Arab Emirates, and Singapore, which have clarified how they will regulate digital assets. According to Garlinghouse, such clarification makes it possible “for entrepreneurs [and] investors to engage constructively with regulators.”
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