- US SEC is unable to clarify the verdict whether XRP is a security
- Without regulatory clarity, the whole crypto industry in the U.S. is under threat
- Frustrated Ripples wants to shift abroad like the U.K. or Singapore
According to Brad Garlinghouse, the chief executive officer of Ripple iterated his concerns over the potentiality of Ripple’s native token XRP. According to Garlinghouse, the United States Securities and Exchange Commission (SEC) lacks regulatory clarity, which ends up holding back the potentiality of Ripple (XRP).
The U.S. cryptocurrency industry is under threat
According to Garlinghouse, without regulatory clarity in the United States, the crypto industry in the country will soon lose ground. Garlinghouse mentioned the example of the internet development period and stated that then clear frameworks paved the internet industry’s path. Now in the matter of cryptocurrencies, overseas regulators are encouraging the growth of the crypto industry through clarity of regulations.
U.K. or Singapore’s regulatory authorities are better than the SEC
A month ago, both Brad Garlinghous and Chris Larsen, the chief technology officer at Ripple, expressed their desires to exit from the United States. Recently in a CNN interview, Garlinghouse mentioned that investors are cautious over investing in Ripple (XRP) in the absence of Securities and Exchange Commission guidance. Additionally, Garling house stated that eight different regulatory bodies hold different views on the legal standing of crypto in the United States. Without any unified approach, crypto businesses are becoming a game of luck.
However, back in October, Garlinghouse tweeted, revealing that the United Kingdom’s Financial Conduct Authority (FCA) and Singapore’s Monetary Authority of Singapore (MAS) were providing regulatory clarity for years for trading crypto-assets. And mentioned that no wonder that both countries have burgeoning crypto industries.
Garlinghouse feels resentful with the challenges faced by XRP
Garlinghouse feels resentful that Bitcoin and Ethereum got the pass, as in the mid of 2018, Willam Hinman, director of the SEC, declared that Bitcoin and Ethereum are not securities. However, the SEC failed to deliver a confirmed verdict on XRP, whether the token is a security or not. According to Garlinghouse, due to unclear regulatory compliance, 95% of the XRP holders are outside the United States, as the U.S. investors are waiting for the SEC to make a call.
Indeed, it seems like the CEO of Ripple is now frustrated that their native currency XRP is facing such challenges that never applied with Ethereum and Bitcoin. So, the firm wants to exit the U.S. and move abroad.