The CEO of Ripple, Brad Garlinghouse, considers that cryptocurrency and blockchain companies in the United States could decide to move overseas if regulatory uncertainty continues. This comes after the official release of the cryptocurrency enforcement framework that was released by the U.S. Justice Department of Justice (DOJ).
Ripple CEO Wants Better Regulatory Frameworks
In a recent tweet thread, the CEO of Ripple Brad Garlinghouse explained that the regulatory document released by the DOJ about virtual currencies is “contradictory” and provides no “regulatory clarity.”
One of the things mentioned by the report released by the DOJ is that cryptocurrencies play “a role in many of the most significant criminal and national security threats our nation faces.”
Brad Garlinghouse considers that several responsible private companies are working on a daily basis to be compliant to the rules imposed by regulatory agencies in the country. However, having no single arbiter of the law is making it difficult for firms to be compliant with all the requirements.
He went on saying that there are more than five agencies with different points of view related to virtual currencies. He then stated that the market needs a better framework that will protect consumers and foster innovation in the country.
On the matter, Brad Garlinghouse wrote:
“We need a framework (like #DCEA) that provides clarity, protects consumers AND fosters innovation in the United States or companies will move their investment (or whole company) overseas.”
Cryptocurrencies have been expanding all over the world over the last years. Back in 2017 Bitcoin price reached $20,000 and many Initial Coin Offerings (ICOs) were released to the market. Several ICOs were scams and many of them ended up shutting down their operations, thus affecting investors that placed their funds on them.
Other countries around the world are already starting to implement clear regulatory frameworks in order for them to be protected, avoid scams and also have the possibility to foster innovation. Switzerland and Japan are two countries with clear regulatory frameworks that are working in order to attract more crypto companies and firms from all over the world.
Belarus was also a country with a clear regulatory framework and a developed IT sector but the situation in the Eastern European nation is now politically difficult for firms to settle their operations there and offer crypto and blockchain solutions and products.