In an uncertain regulatory environment in the United States, many cryptocurrency companies are considering sailing to more benevolent countries. Ripple and Coinbase, who are caught in the crossfire with the SEC, have hinted at a possible relocation. Two CNBC reporters, Ryan Browne and Arjun Kharpal, commented on the issues in a tweet.
According to the journalists, crypto companies like Ripple and Coinbase are playing poker with the SEC.
Crypto Companies Say We Will Relocate Against SEC Pressures!
Despite the long-standing court case with Ripple, the SEC had already caused difficulties for Coinbase, Binance, Bittrex, and Kraken, and the oppressive environment in the US cryptocurrency industry has skyrocketed in the last few months.
These companies are not comfortable with the SEC’s increasing enforcement threats, as they criticize the regulator’s approach of forcing regulation without providing clear guidance for themselves.
Coinbase and Ripple have threatened to move their businesses outside the US in the hope that regulators will reconsider their strict stance.
CNBC reporters also noted that Ripple executives have joined forces to publicly criticize the SEC and gain support from the wider crypto community.
Ignoring Economics for Politics Will Have Bad Consequences
In their report, Browne and Kharpal noted that Ripple CEO Brad Garlinghouse, who is a US citizen, was disappointed with these situations.
In a statement, Garlinghouse said, “The US is not just a little behind, it’s way behind.”
Garlinghouse claims that it is more difficult for the US to prioritize economics over politics, which is a negative decision for investors. In most cases, the SEC claimed that almost all crypto tokens in the market constituted securities.
Therefore, the regulator accused Ripple of offering XRP as an unregistered security in December 2020. However, Ripple continues to fight in court with the SEC on this issue and hopes to receive a favorable decision soon.
XRP continues with green candles l XRPUSDT on TradingView
The SEC has pointed fingers at Ripple, and arrows have also been aimed at Coinbase, issuing a Wells Notice for a possible violation of securities law.
The crypto exchange Kraken also suffered the same fate and had to stop its staking services in the US, resulting in a $30 million settlement.
The SEC claims that its moves are aimed at protecting Americans from crypto investment risks. However, pro-XRP lawyer John Deaton asked SEC Chairman Gary Gensler to stop claiming to protect the American people against crypto.
These regulatory actions have also drawn criticism from industry leaders such as Cardano founder Charles Hoskinson. Hoskinson called for support for pro-crypto policies in the next elections to stop regulatory issues.
