California-based fintech company Ripple Labs has registered a new legal entity in Wyoming. This is evidenced on the website of the State Secretariat.
The status of Ripple Markets WY LLC has been upgraded to active. The initial application date is February 11, 2020. The legal entity’s office is located in Cheyenne.
Ripple’s headquarters are located in San Francisco. In October 2020, co-founder Chris Larsen announced a likely change of jurisdiction to a more friendly one. According to him, the US has too strict regulation for the cryptocurrency industry.
In December, Ripple CEO Brad Garlinghouse said that the organization took a wait-and-see approach to the move after the election of Joe Biden as president of the United States.
The decision of the Ripple was welcomed by the founder and CEO of the cryptocurrency startup Avanti, Caitlin Long. According to her, more and more companies prefer Wyoming as a digital asset-friendly state.
In December 2020, Avanti received financial institution status from the Wyoming Banking Council. Earlier, the state authorities approved a similar application from the Bitcoin exchange Kraken.
WELCOME TO #Wyoming, @Ripple! More #crypto cos are realizing Wyoming is a better domicile than Delaware due to our crypto-friendly laws. People often ask how many cos have relocated/redomiciled to Wyoming–we dunno. We don't keep lists & we like it that way #XRP @Mark_Gordon_WY🤠 pic.twitter.com/zsUApz25Jy
— Caitlin Long 🔑 (@CaitlinLong_) February 21, 2021
In January 2019 the state of Wyoming passed a law that classifies cryptocurrency as money.
Recall that in December 2020, the US Securities and Exchange Commission (SEC) accused Ripple of selling unregistered securities in the form of tokens for $1.3 billion.
In February 2021, the SEC filed an updated version of the lawsuit, clarifying the liability of the company’s CEO, Brad Garlinghouse, and its co-founder, Chris Larsen.