Ripple Boss Brad Garlinghouse: Many Crypto Companies Will Leave The US

Ripple CEO Brad Garlinghouse. (Photo; Doc. Ripplekoers)

JAKARTA The US government's crackdown on the crypto industry through relevant authorities such as the Securities and Exchange Commission (SEC) in recent months, prompted crypto companies to leave the US. Not without reason, the crypto industry itself regrets the legal uncertainty towards crypto.

Commenting on the condition, Ripple CEO Brad Garlinghouse outlined it has the potential to make the departure of many crypto companies in the US due to regulatory uncertainty. At the same time, he praised the steps taken by European countries and the United Arab Emirates for successfully making clear crypto regulations.

The clarity of regulations in these countries has attracted the interest of US crypto companies to move their operations there. Then, the Ripple boss gave an example of a country that succeeded in providing clarity on crypto regulations, namely Britain and Singapore.

With clear rules, investors and entrepreneurs will easily interact with regulators effectively. Garlinghouse assesses that the US government has created confusion in the crypto industry. This has led many crypto companies to switch to other countries.

"To be honest, that's why you see entrepreneurship and investment flowing into other jurisdictions and of course Europe has become a significant beneficiary of the confusion that is happening in the United States," said Brad Garlinghouse.

Crypto companies in the US that choose to switch to other jurisdictions are due to the confusing attitude of regulators, namely the SEC. As is known, the SEC has cracked down on leading crypto companies operating in the US such as Ripple, Coinbase, Kraken, and Binance. Meanwhile, Coinbase managed to get permission to operate in

"Unfortunately, [this crackdown] has prompted companies like Ripple to invest outside the United States. I think it can be said that the United States has made it as confusing as possible about the rules of the game for the crypto industry. As you mentioned, the United States SEC is really a source of confusion," Garlinghouse said.

According to a CoinSpeaker report, the European Union recently authorized a market in Crypto Assets (MiCA) legal framework to be implemented in the next year. Ripple also announced the acquisition of a Swiss crypto custodian solution provider, Metaco, worth US$250 million (equivalent to Rp3.7 trillion). This move will help Ripple expand its product and strengthen its presence in the European market. Ripple will have access to large clients such as BNP Paribas and Citi.