The United States – This 2020, Ripple has been poised with a challenging year. The company CEO Brad Garlinghouse shared that they are still considering leaving the US due to the United States’ strict regulations regarding XRP.
Countries like the United Kingdom, Japan, and Singapore have clear regulatory dynamics for digital assets, unlike in the United States. According to Garlinghouse, the US Regulatory system lacks cohesion and clarity.
The Ripple CEO also shared that in the US, crypto companies are competing with different regulatory environments. Some would say cryptocurrency is a commodity, while others will consider it as a virtual currency alone. However, many critics say XRP is connected to security. This claim makes it difficult for Ripple since it makes the regulatory confusing.
According to Garlinghouse, Ripple’s headquarters will stay in the US if it becomes clearer and solid. This way, they can continue to grow and invest in more businesses in the country. Currently, the US government is still not assuring to crypto businesses than Japan and the United Kingdom authorities. The US Regulatory uncertainly will affect Ripple since it is one of XRP’s strongest markets.
Nevertheless, countries like Japan, Singapore, and the United Kingdom give Ripple enough clarity about the firm’s safety. Also, Japan has Ripple’s major investor, namely SBI Group, one of the most prominent companies that utilize XRP for cross-border money transfers. Garlinghouse confirmed that they would soon relocate if the regulations will stay the same in the US. Ripple has many potential destinations since many governments have created assurance and clarity about how they will consider XRP.
Garlinghouse criticized the US regulators for being undecided on XRP, making it difficult for Ripple to operate better in the US. According to the CEO, the US regulation should not be a guessing game, where authorities cannot conclude cryptocurrencies as property, security, currency, or commodity.
In contrast, Asia countries are very clear about their stance on digital assets for over five years. Although Ripple resides in San Francisco, it still provides cross-border payment services for various financial partners worldwide. The company currently holds billions of dollars’ worth of XRP.
If the US government does not make any changes, digital assets like XRP can underperform, according to Garlinghouse. Unfortunately, Bitcoin is the only virtual currency with the hall pass. This situation creates an atmosphere where big banks might stop partnering with Ripple and stop using XRP-based ledgers.