Crypto Global Shift

Martin Walker
Sep 13, 2023 at 03:09 pm

Crypto Startups Should Look Beyond the U.S.

In addition to advising crypto startups to explore opportunities beyond the United States, Garlinghouse underscored the importance of nations like the United Kingdom, Singapore, and the United Arab Emirates, which have taken proactive steps in formulating clear regulatory frameworks, thus nurturing an environment that fosters innovation and provides a safety net for investors.

Garlinghouse assigned the responsibility for the less-than-favorable crypto landscape in the United States to the U.S. Securities and Exchange Commission (SEC). He maintained that the regulator's litigious approach had inadvertently sparked a contentious relationship with the cryptocurrency industry, leading to ongoing legal disputes.

Since the start of this year, the Commission has initiated lawsuits against multiple digital asset platforms and imposed substantial settlements on various companies, including well-known crypto exchanges such as Binance, Coinbase, and Kraken. These actions have compounded the existing legal wrangling involving firms like Ripple Labs. Notably, in all these legal tussles, the SEC has classified numerous crypto tokens as securities, insisting on their mandatory registration.

However, the Ripple CEO argued that the Commission's litigation tactics were losing their effectiveness, as the American judicial system has begun to show a greater inclination toward supporting the interests of the crypto industry. This shift is exemplified by the recent legal victories secured by Ripple and Grayscale in their battles against the SEC.

"The one country I would currently discourage you from establishing a company in is the United States... I believe you are witnessing a change in momentum. It used to be that many judges simply accepted that the SEC was always right, and they didn't challenge that. But I think you're beginning to see a shift in that pattern," Garlinghouse remarked.

Ripple's Emphasis on International Markets

Fang echoed Garlinghouse's assertions and urged crypto companies to concentrate on aspects within their control, such as developing the right technology and products while supporting responsible regulations.

Despite believing that the recent legal victories offer some clarity for the U.S. crypto industry, Ripple has chosen to strategically expand its footprint into international markets. The company has disclosed its plan to allocate a significant portion of its hiring efforts for this year to locations outside of the United States, aligning with its commitment to global growth and innovation in the crypto sector.

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