Ripple considering leaving the U.S.! Co-founder: If you want to engage in related business, it's best to go to other countries

Ripple co-founder Chris Larsen has stated that the United States is severely lagging in preparing for the next generation of global financial systems based on cryptocurrencies. The company is currently considering relocating its headquarters to countries with clearer regulatory frameworks, such as the United Kingdom or Singapore.

US Regulatory Progress Severely Lagging Behind

During the Los Angeles Blockchain Summit on October 6th, Ripple co-founder Chris Larsen, in a conversation with Jeff John Roberts, a legal, tech, and cryptocurrency journalist from Fortune magazine, stated that the United States is severely lagging behind in preparing for the next generation of global financial systems based on cryptocurrencies. Combined with the U.S. authorities' "enforcement-heavy regulatory" stance, Ripple may consider relocating its headquarters overseas to seek a more favorable development environment. Chris Larsen stated during the event:

"Blockchain and digital currencies are not welcomed in the United States. If you want to engage in related business, you should consider going to other countries. Frankly, we are considering moving our headquarters to a more friendly jurisdiction."

Chris Larsen further expressed that almost every country except the United States has a set of cryptocurrency regulatory systems favorable to industry development. If Ripple ultimately decides to leave the U.S., countries like the UK, Singapore, Switzerland, or Japan could be potential new locations.

If You Can't Change, Leave

In response to this surprising statement, Michael Arrington, the founder of TechCrunch and CrunchBase, stated that this is good news for Ripple, as the lack of clear cryptocurrency regulatory policies is a disaster for the United States. Ripple CEO Brad Garlinghouse also retweeted Michael Arrington's tweet on Twitter and further explained the reasons why Ripple intends to leave the U.S.:

"Due to clear regulatory policies, the world's most powerful internet companies are almost all from the United States, but in this respect, it is a major obstacle for us, who provide blockchain and digital assets. Responsible industry participants like Ripple do not seek to evade legal norms; we just want to operate in jurisdictions with clearer regulatory frameworks."

Strongest internet companies built in the US, in part b/c of regulatory clarity. We have that opp with blockchain + digital assets. Responsible players like Ripple aren’t looking to avoid rules, we just want to operate in a jurisdiction where the rules are clear. #DCEA of 2020 https://t.co/LqbEDuMXvx

— Brad Garlinghouse (@bgarlinghouse) October 6, 2020

Ripple Deep in Legal Battle

Since 2018, Ripple has been embroiled in legal battles with investors due to regulatory uncertainties. These investors claim that the company's sale of the digital currency XRP violates state and federal securities laws. However, the company insists that XRP is not a security but a settlement tool, and buying XRP is not an investment in Ripple. There is no shared enterprise between Ripple and XRP buyers, as stated in a court document from September 2019:

"There is no guarantee that Ripple will help XRP holders create profits, and the XRP Ledger is decentralized."

Despite years of litigation with investors, Ripple has not been able to extricate itself. A federal judge recentlyrejected Ripple's motion to dismiss the lawsuit brought by investor Vladi Zakinov in 2018.