Ripple CTO Hints That Company Could Shut the Door on the U.S. Market

It comes in response to speculations surrounding a previous ominous tweet from the executive.

David Schwartz, chief technology officer at Ripple, has hinted that the blockchain payments company could consider shuttering its operations in the United States.

The Ripple executive and XRP Ledger designer did this in a tweet yesterday. It came in response to speculation over an ominous tweet where he noted that the firm could be tempted to “walk through a door and slam it shut.”

“I hope we don’t get into a position where we’re tempted to walk through a door and slam it shut behind us.”

In his latest tweet, Schwartz, while noting that it will not be his preferred outcome, hinted the company could leave the U.S. if left with no choice. Schwartz asserted that there was more to the world and that Congress could always change the status quo.

“I hope we don’t run into a situation where we have to make any choice like that,” Schwartz wrote. “Keep in mind, while the stakes are high, they’re not quite as high as this suggests. After all, this is only the US. There’s quite a bit more to the world. And Congress can change the laws.”

I hope that we don't run into a situation where we have to make any choice like that. Keep in mind, while the stakes are high, they're not quite as high as this suggests. After all, this is only the US. There's quite a bit more to the world. And Congress can change the laws.

— David "JoelKatz" Schwartz (@JoelKatz) February 22, 2023

While the comments from Schwartz do not confirm or deny anything and speak of a hypothetical situation, Dizer Capital founder Yassin Mobarak suggests that vague statements from the executive often hint at coming events. According to Mobarak, Schwartz vaguely told XRP holders to take profits before the Wells notice against Ripple became public.

Meanwhile, Schwartz’s latest Twitter cover photo on Twitter has also served as fuel to stoke further speculation.

“When a scrappy financial startup takes on a web of corruption and betrayal to bring instant payments to the masses, they learn that the cost of disrupting the status quo is higher than they could ever have imagined, forcing them to decide between their vision and their survival,” the text in the cover photo reads.

Deaton Responds

Unsurprisingly, Schwartz’s latest comments have elicited a response from Attorney John E. Deaton.

The lawyer representing thousands of XRP holders in the U.S. Securities and Exchange Commission case against Ripple as a friend of the court noted that it spoke to why XRP holders needed representation in the lawsuit over whether XRP is a security. According to Deaton, Ripple is primarily obligated to itself as a company.

This is a major reason #XRPHolders had to be represented in the case. In the end, Ripple must decide what’s best for Ripple and its employees and shareholders – not what’s best for #XRPHolders or other businesses developing on the #XRPL.

— John E Deaton (@JohnEDeaton1) February 22, 2023

In response to contrary views, the lawyer pointed out that part of Ripple’s defense is that they do not owe XRP holders anything.

It is worth noting that the case is now awaiting a court ruling after over two years, as both parties have filed all required briefs.

It bears mentioning that Ripple Chief Executive Office Brad Garlinghouse has often reiterated that 95% of customers signed after the SEC case are outside the U.S. He also recently admonished crypto community members to look outside of the U.S. for encouragement, noting that other administrations were building clear crypto rules.

Under the current U.S. regulatory climate, seeing more crypto firms focus efforts outside the country will be unsurprising. At the time of writing, Schwartz is yet to respond to requests for comment, and it is unclear how such a move will affect XRP holders in the country.