The 3rd leading cryptocurrency Ripple [XRP] is considering relocating to Europe or Asia amid growing frustration at the shortage of regulatory clarity within the U.S.
While speaking to Fortune Magazine’s Jeff John Roberts at the 6th Oct. LA Blockchain Summit, Ripple co-founder Chris Larsen revealed that the U.S. was “woefully behind” in preparing for the cryptocurrency-based next generation of a worldwide economic system. Including U.S. authorities’ policy on “regulation through enforcement” & Ripple may consider leaving the country behind entirely.
“The message is blockchain and digital currencies aren’t welcome within the U.S.,” Larsen added. “You want to be in this business, you almost certainly should be going elsewhere. To be honest with you, we’re even looking relocating our headquarters to a way more friendly jurisdiction.”
Larsen revealed that the firm was considering moving to countries just like the United Kingdom, Switzerland, Singapore, or Japan, because within the U.S., “all things blockchain & virtual asset start and end” with regulatory bodies just like the. SEC [Securities and Exchange Commission].
“I don’t think that the posture at the SEC today can possibly worsen for [the cryptocurrency and blockchain] industry. It’s just ‘crush it and push it away.’”
Ripple CEO Brad Garlinghouse added further within his Tweet. “Responsible players like Ripple aren’t looking to avoid rules, we just want to work within a jurisdiction where the principles are clear,” he added.
Ripple faces a variety of class-action lawsuits alleging the firm sold its XRP token in an unregistered securities offering. The SEC has not published any official statement on the matter following its 2019 publication on a regulatory framework for virtual assets.
As a result, the cryptocurrency firm continues to be called to court partly over a clear lack of regulatory clarity from the govt agency. A federal judge recently denied a motion by Ripple to dismiss a lawsuit filed by investor Vladi Zakinov earlier in 2018 alleging the XRP token is a security under the California law.