Given the regulatory hiccups in the United States, crypto first like Ripple are considering moving their businesses abroad.
According to two CNBC correspondents, Arjun Kharpal and Ryan Browne, crypto companies like Coinbase and Ripple blockchain are playing a high-stakes poker game with the U.S. Securities and Exchange Commission (SEC).
Notably, this view comes in light of threats from Ripple and Coinbase to relocate their businesses outside the United States as the regulatory pressure intensifies, hoping their warnings will prompt the SEC to reconsider their hardline stance on the industry.
The correspondents noted that executives from Ripple had joined forces in publicly criticizing the SEC, aiming to rally support from the crypto community and send a clear message to US politicians that the country risks missing out on a crucial technological revolution.
Major cryptocurrency companies from Coinbase to Ripple are playing a game of poker with the SEC, making bold threats to leave the US in the hope the regulator will soften the hard line it's taken on the industry.
Analysis piece w/@ArjunKharpal: https://t.co/FnhdFVKbrQ
— Ryan Browne (@Ryan_Browne_) May 15, 2023
The CEO of Ripple, Brad Garlinghouse, was quoted saying “The US is getting passed not just by a little bit but by a lot,” expressing sadness and disappointment with the current situation, particularly being a US citizen.
Garlinghouse remarked that the challenging aspect of the situation was that the U.S., in his opinion, prioritized politics over policy, which he believed was an unfavorable decision for those seeking to invest in the economy.
The U.S. regulator has consistently argued that most tokens in the market could be categorized as securities, which caused the SEC to file a lawsuit against Ripple in late 2020, alleging that the firm failed to register its network token, XRP, under security laws. On the other hand, Ripple and its attorneys have continuously contested the SEC’s claim.
Deaton, a Pro XRP attorney, has also made a public plea to SEC Chairman Gary Gensler, urging him to stop protecting U.S. citizens in their engagements with cryptocurrencies.
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