Ripple Not Happy With Regulatory Fog In US As Customers Worried About XRP
As the California-based major blockchain company continues to mull an initial public offering (IPO), Ripple CEO Brad Garlinghouse said the US regulatory framework is out of step with a number of markets such as the UK, Singapore and Japan. This lack of regulatory clarity and certainty for investors is a key factor hampering the company’s development in the US and the recruitment of new customers, he said in an interview with CNN.
“We have been big advocates of a bill that was introduced in the Congress called the DCEA, or the Digital Commodity Exchange Act … [which could be] a very important step in providing that clarity and certainty here in the US,” Garlinghouse said.
The CEO was making reference to earlier statements suggesting his firm was considering to leave the US, and some of the potential destinations to which the company could move include countries in Asia and Europe.
According to Garlinghouse, the lack of a clear regulatory framework in the US was impacting on the company’s talks with numerous customers who were hesitating whether to join its network because of country-specific reasons.
“Often times when I’m speaking with customers and we’re talking to them about our product that uses XRP in the payments flows, they will ask me about the regulatory dynamics, and they will [say] … look, until there’s clarity in the regulatory frameworks, we’re going to hold off,” the CEO said. “Now, that has not been the case because of the clarity and certainty in countries like… the UK, or the UAE, or Switzerland.”
Given that 95% of Ripple’s customers are based outside the US, the company said “one of the dynamics [causing this] is we have US companies who are waiting for clarity” in particular from the US Securities and Exchange Commission.
Commenting on its potential IPO, Ripple’s CEO said the company has “not been public about what our plans are with the exception that I’ve said there will be public crypto companies. I originally predicted we’d see them in the year 2020” but “the pandemic affected a lot of things, slowed down things a bit”.
At pixel time (10:36 UTC), XRP trades at USD 0.627 and is up by 1% in a day and 19% in a week. The price rallied by 169% in a month and 192% in a year.
Watch the whole interview below:
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