UK Getting Closer to Crypto Industry, Ripple Executive Calls US Left Behind

JAKARTA - Ripple's senior executives, Andrew Whitworth and Susan Friedman, paid tribute to the UK for their progressive approach to the crypto industry. They say that the UK has overtaken the US in terms of crypto regulation.

This praise comes after the Kingdom approved the Financial Services and Markets Bill which regulates crypto trading as a regulated financial activity within the country. Friedman considers this law a significant milestone in global crypto regulation, while Whitworth sees it as a step forward in fulfilling the UK's promise as a crypto hub.

The Financial Services and Markets Bill mirrors the pro-crypto policies implemented by the UK. This regulation marks the end of a thorough regulatory process that aims to regulate the UK financial sector. In addition to regulating cryptocurrencies and stablecoins, this law gives regulators the authority to develop legal frameworks that suit digital assets.

Furthermore, the law recognizes stablecoins as a form of payment and regulates cryptocurrencies as domestically regulated financial activities. Strict supervision of crypto advertising and promotion is also enforced in this regulation.

While the UK is overtaking the United States in crypto regulation, the US faces challenges in reaching consistent regulatory agreements. Financial regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are constantly vying to keep tabs on this fast-growing market, causing confusion for market participants.

Legal actions against leading crypto companies like Binance and Coinbase are examples of regulatory ambiguity. In addition, different judgments regarding the classification of crypto assets as securities or commodities further complicate the situation.

Uncertainty about crypto regulations in the United States has prompted a number of crypto companies to seek opportunities in overseas jurisdictions. Ripple CEO, Brad Garlinghouse, highlighted that several crypto companies such as Bittrex and Paxful have left the US due to lack of clarity in regulations.

The struggles and rapid changes in US crypto regulations have also been a factor in driving these companies to seek a more stable and clear regulatory environment in other countries.