Ripple Rumored to Move Out of the U.S. Because of the Country’s Vague Regulatory Stance
Ripple CEO Brad Garlinghouse has recently praised the U.K. Financial Conduct Authority, as well as the Monetary Authority of Singapore, making XRP users question whether this means the network will move to one of these regions, as per the latest rumors.
In a tweet, Garlinghouse spoke highly of these regulatory authorities and how they manage their respective territories. He also said that it’s no wonder both the U.K. and Singapore have blooming crypto industries.
1/ UK’s FCA and Singapore’s MAS have been leaders for years in providing clarity on using/trading assets – no surprise that both countries have traditional FIs leaning into using this technology. DBS’ (pre)announcement today is a prime example. (1/2) https://t.co/xB3dUUG9sV
— Brad Garlinghouse (@bgarlinghouse) October 27, 2020
The U.S. is Technologically Far Behind
The rumors come after Ripple threatened to leave the U.S. in response to the country’s regulatory clarity. The news first gained attention at the beginning of this month, when Ripple CTO Chris Larsen expressed his frustrations with U.S.’ hostile stance towards the crypto segment.
Most of this disappointment comes from a regulatory body that favors Bitcoin and Ethereum. According to Larson, the upshot of all this puts the United States well behind China in the ‘tech cold war.’
“Instead of pivoting to encourage U.S. innovation to keep up, they’ve done the opposite. They gave Bitcoin and Ethereum a pass, proof-of-work systems that benefit China, weirdly. But everything else is still in limbo, or worse, kind of regulated through enforcement,” Larson said.
Is Ripple About to Leave the U.S.?
Some observers have critiqued Ripple over their warning to leave the U.S., but Garlinghouse has defended the company by blaming the Securities and Exchange Commission.
He added that ‘fleeing’ the United States is not something he wants to do, but because of the condition of the country’s crypto landscape, he is obliged to consider setting up somewhere else.
“Some have suggested Ripple is “fleeing” the U.S., let me unequivocally say this is absolutely not the case. We’re a proud US-based company and would like to stay here, but a lack of regulatory clarity and level playing field is forcing us to evaluate other jurisdictions. “
XRP is currently changing hands in an ascending channel, and if it manages to break the $0.2550 line, it could see the start of a powerful rally. On October 29th, the price of XRP is down by three percent to $0.2458.
Larsen co-founded Ripple in 2012 and now fulfils the role of Executive Chairman. A long-standing advocate for financial privacy and education, Larsen and the Ripple Foundation gifted $25 million to San Francisco State University in April 2019.
Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.