Having trouble with regulatory agencies, Ripple recently decided move from the US and relocate your business to another country. In a interview with CNN on December 2, CEO Brad Garlinghouse explained why Ripple made its decision, adding that the 95% of their customers are not even from the US.
Ripple faced a troubled year as certain controversial activities led to regulatory pressure from US agencies. For that reason, the San Francisco-based company plans to move abroad. During the interview, Garlinghouse stated that 95% of Ripple's clients are not from the United States. Due to regulatory uncertainties, the CEO believes that XRP is unpopular with American citizens.
The Securities and Exchange Commission (SEC) represents the biggest regulatory hurdle in the cryptocurrency sector. In 2018, the agency decided to present a decision that marks Bitcoin and Ethereum as non-securities. However, the SEC did not want to apply the same rules for XRP, despite being the third largest crypto asset on the market.
In one part of the interview, Garlinghouse spoke about the injustice committed by the regulatory agency and noted that many others they have called XRP a currency. The CEO specifically stated:
“For us around XRP and over 100 companies that are working with XRP getting that clarity, it is very clear to me that many companies are using XRP as their currency. The US Department of Justice referred to XRP as a currency, and FinCEN referred to XRP as a currency. But he still hasn't had that clarity from the SEC.
Garlinghouse Claims Investors Are Waiting For SEC Decision Before Investing In Ripple
The aforementioned factors have caused a loss of interest by investors americans. Since XRP is not yet regulated and may fall into the value category, traders under the jurisdiction of the SEC are no longer willing to invest.
Brad Garlinghouse provided the CNN host with examples of what kinds of problems the company has faced because of the decision. The CEO mentions several events where he was asked about the regulatory status of XRP after showing the product. States that most have refused to invest due to regulatory uncertainty and that they are waiting for the SEC to make a final decision.
In 2021, Ripple you can finally make up your mind and select a crypto-friendly regulatory jurisdiction. Numerous countries offer safe havens for blockchain companies, including Singapore, Japan, Malta, Portugal and many others. While the relocation will not give US investors a reason to buy XRP, it will still give the company headroom to operate smoothly without regulatory pressure.
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