Many crypto firms could move from the United States to more progressive jurisdictions if local regulators continue the unfounded pursuit. Ripple CEO Brad Garlinghouse said this in an interview with CNBC.
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In his view, Europe, the UAE, the United Kingdom and Singapore offer more clarity in the regulatory framework for digital assets.
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“Frankly, that is why you are seeing entrepreneurs and investment flowing to other jurisdictions. And Europe has benefited significantly from the confusion in the United States,” he added.
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Garlinghouse noted that at the head of this muddle is the U.S. Securities and Exchange Commission (SEC).
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In response to the bankruptcy of FTX, Ripple’s CEO said that what happened with the company was fraud and has nothing to do with cryptocurrency. He believes this situation has been a catalyst for the exodus of companies from the United States.
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According to Garlinghouse, Ripple is in good financial shape. Previously, the company acquired the crypto custodian Metaco for $250 million.
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“Ripple has a very strong balance sheet, and we are playing offense. … Be greedy when others are fearful, and fearful when others are greedy,” said the CEO, citing billionaire Warren Buffett.
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Regarding plans to list on the stock market, Garlinghouse noted that the firm is not in a rush, but it does not need to raise additional capital.
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In December 2020 the SEC filed a lawsuit against Ripple, accusing the company of selling unregistered securities. Garlinghouse estimated the firm’s legal costs for the ongoing regulatory proceedings at $200 million.
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In late March 2023 there were reports that Ripple had a good chance of positively resolving the litigation.
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In April, attorney Jeremy Hogan stated that XRP is not a security and only “might fit the definition of an investment contract”.