Ripple CEO slams US authorities for moving backward in creating clear crypto rules.
Ripple CEO Brad Garlinghouse has taken a swipe at the United States for being backward in establishing new regulatory frameworks for cryptocurrency-related activities.
In a tweet today, Garlinghouse said even though the United States is moving backward in establishing clear crypto rules, he is more focused on positive events happening in other parts of the world.
While the United States continues to move backward, Garlinghouse said other regions like the United Kingdom, United Arab Emirates (UAE), and the European Union (EU) have all moved forward with new regulatory frameworks for crypto activities.
He commented while reacting to the release of Ripple’s Q1 2023 financial report. Brad said he “like To focus on the positive,” as Ripple’s Q1 2023 report shows that XRP Ledger Saw 114K+ New Wallets, 116M+ Transactions, and 140K+ XRP Burned in Q1 2023. Also, Ripple’s Q1 2023 report reveals a healthy ODL despite the banking crisis.
The US may be moving backwards, but I like to focus on the positive – in the last few months the EU, UK and UAE all moved forward with new regulatory frameworks and regimes for crypto activities.
Read on in our markets report for more: https://t.co/iC7dzo80aC
— Brad Garlinghouse (@bgarlinghouse) April 27, 2023
Crypto Regulations in the EU, UAE, and UK
It bears mentioning that the United States is lagging in establishing clear rules for cryptos compared to the UAE, UK, and the EU. The three regions have all taken significant steps toward regulating cryptocurrency activities.
The most significant move toward regulating cryptos occurred in the EU last week. As reported by The Crypto Basic, the European Union Parliament approved its first comprehensive framework to regulate its cryptocurrency industry.
The regulator voted in favor of a new cryptocurrency licensing regime known as MiCA, a rule that aims to reduce the risks for crypto investors. Through the rule, providers will be held responsible if they lose investors’ crypto assets.
The EU Parliament also approved a separate law known as the Transfer of Funds regulation, which aims to eradicate money laundering activities.
Similarly, Dubai, one of the Emirates of the UAE, released its 2023 rulebook for regulating cryptos earlier this year, aiming to protect investors, attract crypto businesses, and curb illicit activities.
In February, the UK government laid out plans to regulate the emerging market. The new regulations would cover different aspects of crypto activities, including executing payment transactions and remittances, admitting new users to a trading platform, etc.
US Lags Behind in Establishing Clear Crypto Rules
Despite the progress recorded in these regions, the United States has yet to make significant progress toward establishing clear rules for its crypto industry. The United States still struggles to identify which crypto asset should be classified as security or commodity.
Interestingly, the SEC believes that most crypto assets fall under its jurisdiction and has continuously adopted enforcement actions as its preferred regulatory tactics.
The SEC has continued to ignore calls from industry stakeholders to establish clear crypto rules. Gary Gensler, the SEC’s Chairman, reiterated that the industry already has clear rules while blaming crypto businesses for lack of compliance.
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