Ripple, a top crypto company in the US, announced through a senior executive that it might soon be forced to move its headquarters abroad to escape unforgiving laws and regulations.
Speaking to Fortune, Ripple’s executive chairperson Chris Larsen mentioned that the San Fran.-based firm has long suffered under “the Federal government’s aggressive attitude toward the crypto sector” –specifically pointing an accusing finger at the Securities and Exchange Commission (SEC).
Ripple has long confronted SEC and shareholders concerning whether XRP (a Ripple-dominated digital currency) is a security.
While it owns a considerable portion of XRP, Ripple maintains that the organization supervising XRP Cryptocurrency payments is as decentralized as those overseeing Bitcoin & Ethereum.
These two competing currencies have received SEC approval as “not centrally controlled” and free from security regulations.
According to Larsen, almost every other nation has a fair regulatory ecosystem for Cryptocurrencies than the United States.
Still, he strongly hinted that the United Kingdom and Singapore are the most likely headquarters if Ripple exits the US.
“And while Ripple’s exit from the United States will not change most of the regulatory aggressiveness towards crypto in the nation, having another country as our chief regulator will be a sigh of relief,” he explained.
Unforgiving Regulations May Threaten Us’s Bottomline
Remember Project Libra–Facebook’s controversial proposed digital currency? Well, it hasn’t kicked off due to similar regulatory obstacles as Ripple.
All the turmoil comes in the middle of a heated discussion over the primary responsibilities of central banking institutions and digital cryptocurrencies.
A dubious group of market analysts, including Larsen, cautions that the United States risks surrendering financial supremacy to China, set to digitize the Yuan soon.
Consequently, the US may lag in blockchain tech, and the USD might lose its place as the globe’s reserve currency.
Preparing For Growth
Meanwhile, brands like MasterCard are launching software solutions that enable central banking institutions to experiment with crypto in a supervised payment ecosystem.
If Ripple’s claims about the consequences of strict (unnecessary) regulations towards the crypto sector, then the United States, through the SEC, must make changes for the better.
And because other critics share this opinion, it’s time to analyze the weight of Larsen’s claims and act accordingly.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated Cryptocurrency payments provider in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.