Ripple CEO Brad Garlinghouse said the company could relocate from the US to the UK due to clearer regulation of the crypto industry in that jurisdiction.
Ripple is forced to change its jurisdiction due to excessive pressure from the US Securities and Exchange Commission (SEC). The agency believes that the company has violated US securities laws. The proceedings with the Commission have been ongoing since May 2018, when investors filed a lawsuit against Ripple, accusing the company of conducting an unregistered ICO in 2013.
The SEC considers XRP to be securities or investment contracts, while Ripple’s management denies this. US regulators do not equate bitcoin and ether with securities, so Garlinghouse is urging US regulators to clarify their attitude towards XRP and other cryptoassets. The main reason why the Ripple management intends to leave the United States is the uncertainty of the legal status of XRP.
Garlinghouse recently named the most preferred countries for Ripple’s relocation – Japan, Singapore, Switzerland, the United Kingdom and the United Arab Emirates. Garlinghouse leans more towards “Foggy Albion” as the UK Financial Conduct Authority (FCA) uses a clear asset classification and does not categorize XRP as a security. Therefore, it would be more appropriate for Ripple to register in the UK, as it will help avoid many regulatory issues.
Earlier, Garlinghouse recommended that US regulators study cryptocurrencies in more detail, since the country lags far behind China in terms of developing its own digital currency.