In the recent turn of events, the attractiveness of the US crypto landscape has continued to fade due to a lack of clear regulation on digital assets. The unsuitability of the US crypto ecosystem has created concerns among the key players in the financial sector.
Speaking exclusively in Singapore at the Token 2049 conference, the chief executive of Ripple, Brad Garlinghouse, confessed that the US ranks among the worst markets to establish a crypto startup. Reflecting on the legal tussle battling Ripple, the CEO advised the investor not to start a crypto firm in the US.
Ripple CEO Urges Investors to Flee from the US
Compared to other crypto-friendly countries, the US crypto market is considered unsuitable for companies at their early development stage. In his address, the CEO urged the US to adopt the regulatory approach on digital assets adopted in Singapore, the UK, the United Arab Emirates (UAE) and Switzerland.
The government in these countries collaborates with crypto firms to develop policies that forster growth of the industry. He praised the countries mentioned above for implementing policies that support crypto innovation and upholding global consumer protection laws.
The executive lamented that the US Securities and Exchange Commission (SEC) had created an unfavourable business environment for crypto firms. Commenting on the ongoing lawsuit between the SEC and Ripple, Garlinghouse blamed the market regulators for engaging in political battles.
He anticiaptes that the court might favour Ripple over SEC due to the complexity of the case. Addressing the panel, the Ripple boss claimed that it was evident that the legal momentum was shifting to favour the crypto industry.
He criticized the regulatory approach used by the SEC to supervise the crypto sector. Initially most judges believed that the SEC decision was always right. However, in the recent case, the legal team in most courts has expressed doubt about the SEC decision.
Court Express Concerns on SEC Decision
A couple of weeks ago, the court ruled in favour of Grayscale, urging the SEC to review the Bitcoin exchange-traded fund (ETF) application. Garlinghouse argued that the partial victory for Grayscale and Ripple demonstrated that the SEC was not always right.
Nonetheless, the CEO lauded the court judgment for seeking to provide regulatory clarity for US token issuers and crypto custody service providers. The executive confessed that Ripple has the largest market in the US compared to other countries.
Despite owning a considerable market share in the US, Ripple plans on broadening its market presence to other crypto-friendly countries. Garlinghouse admitted that Ripple plans to expand to countries that understand the benefits of crypto and blockchain technologies.
The expansion plan will be accompanied by hiring 80% of the workforce from outside the US in 2023. In a separate report, the president of OKX, Hong Fang, condemned the ongoing politics in the US that limits the growth of the crypto industry.
The executive urged the crypto firms in the US to focus on the internal factors affecting their business, which can be controlled. Fang outlined the internal factors such as products, technology and regulations that determines business success.
Besides analyzing the suitability of the crypto sector, Fang predicted the demand for custodial products created from spot Bitcoin ETF to decline. He argued that most custodial products are new in the market and are yet to be tested by most investors.
Ripple Vows to Fight SEC in Ongoing Lawsuit
In his statement, Fang expressed concern about the readiness of the crypto industry to accept the custodial services and products. The executive admitted that the spot Bitcoin ETF will attract more institutional clients to the crypto sector.
However, Fang regretted that the ongoing price volatility of Bitcoin might scare away some of the investors. The official anticipates the developers will continue building applications and software centred on Bitcoin.
Elsewhere, in an interview with CNBC, Ripple’s president, Monica Long, vowed to fight the ongoing case with the SEC. After revisiting the court judgment issued by Judge Analisa Torres, which described Ripple’s native token XRP as a commodity, Long confirmed that her team plans to expand their market presence to other regions despite the legal tussle.
She vowed to cooperate with the regulators and policymakers in the impending expansion plan. Long added that Ripple will ensure every new product meets the compliance requirements. In her statement she demostrated her willingness to work closely with the regulators to support the growth of the company.