JUST

United

Impact

<p><strong>Several crypto firms are leaving the US as regulators are openly waging a war against the crypto industry.</strong></p>
<h2 style="text-align: center;" id="ripple-is-expanding-its-business-8211-overseas">Ripple Is Expanding Its Business &#8211; Overseas</h2>
<p>Ripple CEO Brad Garlinghouse <a href="https://decrypt.co/140587/europe-significant-beneficiary-us-crypto-regulatory-confusion-ripple-ceo" target="_blank" rel="noopener">expressed concern</a> that more cryptocurrency firms may leave the United States if regulators continue to impose confusing rules. He highlighted Europe as a progressive jurisdiction that offers clarity and leadership in regulating digital assets. Ripple recently acquired a Swiss crypto startup to expand its <a href="https://walletinvestor.com/magazine/will-ripple-leave-the-us-behind-ceo-announces-expansion-to-dubai" target="_blank" rel="noopener">operations overseas</a>.</p>
<h2 style="text-align: center;" id="regulatory-confusion-pushing-firms-away">Regulatory Confusion Pushing Firms Away</h2>
<p>Garlinghouse criticized the confusing regulations in the US, stating that they would prompt crypto companies like Ripple to invest and hire outside the country. He praised Europe, the UAE, the UK, and Singapore for providing clear regulatory frameworks that foster constructive engagement between entrepreneurs, investors, and regulators.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">“The U.S. has made crypto rules as confusing as possible. About 95% of our customers are non-US.&quot;<br />&#8211; Brad Garlinghouse, CEO <a href="https://twitter.com/Ripple?ref_src=twsrc%5Etfw">@Ripple</a> <a href="https://twitter.com/hashtag/fintech?src=hash&amp;ref_src=twsrc%5Etfw">#fintech</a> <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw">#crypto</a> <a href="https://twitter.com/search?q=%24XRP&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$XRP</a> <a href="https://t.co/Pq0FbhF9IY">https://t.co/Pq0FbhF9IY</a> <a href="https://t.co/sFdX1MxWdx">pic.twitter.com/sFdX1MxWdx</a></p>
<p>&mdash; XRP_Cro 🛸 (@stedas) <a href="https://twitter.com/stedas/status/1659373053220888576?ref_src=twsrc%5Etfw">May 19, 2023</a></p></blockquote>
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<h2 style="text-align: center;" id="ripple-8217-s-acquisition-and-financial-position">Ripple&#8217;s Acquisition and Financial Position</h2>
<p>Ripple&#8217;s recent acquisition of Swiss-based crypto custody firm Metaco was seen as a strategic move to expand its product suite and attract notable clients. Garlinghouse emphasized that Ripple is financially strong and funded the acquisition with $250 million from its own balance sheet.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">💥 JUST IN 💥</p>
<p>Brad Garlinghouse tells CNBC that Ripple has bought the Swiss crypto-custody firm Metaco to continue building in countries where there is actual regulatory clarity and that the SEC &quot;can&#39;t do shit about it.&quot; <a href="https://t.co/tTatCJeFZb">pic.twitter.com/tTatCJeFZb</a></p>
<p>&mdash; XRPP (@XRP_Productions) <a href="https://twitter.com/XRP_Productions/status/1659225946749034496?ref_src=twsrc%5Etfw">May 18, 2023</a></p></blockquote>
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<h2 style="text-align: center;" id="ripple-8217-s-legal-battles-and-impact">Ripple&#8217;s Legal Battles and Impact</h2>
<p>Ripple is currently facing a lawsuit from the SEC, alleging securities law violations related to the sale of XRP. Garlinghouse mentioned that the regulatory crackdown has encouraged Ripple to explore opportunities outside the US. Coinbase, another major crypto firm, has also faced legal action from the SEC, leading some companies to take a stand against the perceived unfriendly regulatory environment.</p>
<h2 style="text-align: center;" id="europe-as-a-beneficiary">Europe as a Beneficiary</h2>
<p>The regulatory confusion in the US has benefitted Europe, especially with the introduction of clearer crypto rules through the Markets in Crypto Assets (MiCA) guidelines. France, in particular, has actively promoted its regulatory framework to attract American companies and foster innovation.</p>
<h2 style="text-align: center;" id="france-8217-s-approach-and-mica-implementation">France&#8217;s Approach and MiCA Implementation</h2>
<p>French authorities, including the AMF, have extended invitations to American firms, highlighting the advantages of their regulatory framework. MiCA, to be implemented in 2025, will provide a harmonized framework across the European market. France currently hosts numerous registered crypto companies, and more are expected to establish a presence due to the upcoming regulations.</p>
<h2 style="text-align: center;" id="the-importance-of-clarity">The Importance of Clarity</h2>
<p>Clarity and structure in regulatory frameworks are crucial for crypto companies to operate effectively and limit abuse while fostering innovation. The enhanced registration process and transitional measures implemented in France demonstrate the country&#8217;s commitment to adhering to EU-wide regulations.</p>
<h2 style="text-align: center;" id="contrasting-us-and-european-approaches">Contrasting US and European Approaches</h2>
<p>Regulators in Europe, aided by EU-wide crypto rules, are taking clearer action compared to their American counterparts. This proactive stance and the potential for a comprehensive regulatory framework may attract businesses that seek regulatory certainty in the fast-paced crypto market.</p>
<h2 style="text-align: center;" id="summary">Summary</h2>
<p>The regulatory confusion in the US is pushing more crypto firms to explore opportunities in Europe and other jurisdictions with clear regulatory frameworks. Ripple&#8217;s recent acquisition and financial position reflect its commitment to expand globally. France, in particular, is actively promoting its regulatory framework and benefiting from the uncertainty in the US. The contrasting approaches between the US and Europe highlight the importance of regulatory clarity to attract and retain crypto businesses.</p>

Ripple CEO Warns of Crypto Firms Leaving US Due to Regulatory Confusion

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