Ripple CEO: lack of regulatory framework putting US companies at disadvantage
It was only last week that Ripple’s co-founder Chris Larsen said that Ripple may consider relocating to other countries citing the lack of regulatory clarity in the United States. Following which, CEO of Ripple, Brad Garlinghouse shared his opinions today regarding the need for regulatory clarity. In a Twitter thread, Garlinghouse emphasized (again) a possibility that Ripple could move out of the U.S, given its “lack” of a regulatory framework:
The lack of a single national regulatory framework is putting US innovation and US companies at a significant disadvantage. All we’re asking for is a level playing field – if we [Ripple] need to move to another country to get that, then that’s the path we will have to take.
Recently, U.S Department of Justice published a cryptocurrency enforcement framework after which the CEO stated that the 70-page report was “contradictory” and did not offer regulatory clarity. Moreover, on the other hand, former CFTC chairman Chris Giancarlo had once remarked that XRP was not a security. However, in today’s thread, the Garlinghouse believed that U.S lawmakers were making the crypto economy a “guessing game:”
However, last week’s DOJ report lists 8 separate US reg bodies each with a different view: crypto is property, crypto is a commodity, crypto is a virtual currency, crypto is a security, etc. Regulation shouldn’t be a guessing game.
The company has always wanted U.S regulators to pay more attention to the crypto space. So far, Ripple has involved prominent U.S. policymakers in its events such as the World Bank’s Mahesh Uttamchandani and the World Economic Forum’s Sheila Warren, who are keynote speakers at Ripple Swell 2020.
Moreover, according to Garlinghouse, Ripple “abides by and supports” the Bank Secrecy Act and Anti Money Laundering laws. The CEO said in a tweet:
Ripple is a proud US-based company. Ripple abides by and supports critical laws – like strong BSA/AML controls – that keep bad actors out and consumers safe. We are NOT looking to evade US regulation.
In addition to this, Garlinghouse believed that “some” US regulators were making “matters worse” by favoring decisions that “actively” supported Chinese technologies:
To make matters worse, some US regulators have already made decisions that actively favor Chinese technologies OVER US companies. Legislation like the DCEA [Digital Commodity Exchange Act] can bring US companies to equal footing.