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Amid deep regulatory uncertainty in the United States, several crypto firms are considering moving into a more favorable environment. Leading US firms Ripple and Coinbase, who have served as cross-chairs of the Securities and Exchange Commission (SEC), have already hinted at a possible move. In response to these questions, two CNBC correspondents, Ryan Brown and Arjun Harpal, spoke out.
According to journalists, cryptocurrency companies such as Ripple and Coinbase are playing poker with the SEC.
Cryptocurrency firms threaten relocation to ease regulatory pressure
The regulatory environment in the US cryptocurrency space has become more tense over the past few months as the SEC has accelerated its actions against crypto companies. The SEC has turned its attention to Coinbase, Binance, Bittrex and Kraken amid a protracted legal battle with Ripple.
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These firms are unhappy with increased regulatory enforcement threats as they complain that the Securities and Exchange Commission has adopted an enforcement approach without giving them any clear direction.
Coinbase and Ripple have even threatened to move their business outside of the US, hoping that regulators will reconsider their hawkish stance.
CNBC correspondents also noted that Ripple executives have joined forces to publicly criticize the SEC and gain support from the wider cryptocurrency community.
Priority of politics over politics is unfavorable for the economy, Ripple CEO says
In their report, Brown and Harpal cited Ripple CEO Brad Garlinghouse, who, as a US citizen, expressed frustration with the situation.
In a statement, Garlinghouse said, “The US is not just overtaking by a little, but by a lot.”
Garlinghouse argues that what is more complex is the fact that the US considers politics over politics, which is an unfavorable decision for investors. In most cases, the SEC has repeatedly stated that almost all cryptocurrency tokens on the market are securities.
This is why the regulator sued Ripple in December 2020, accusing the firm of offering XRP as an unregistered security. However, Ripple continues to litigate the issue with the SEC, hoping to get a favorable ruling soon.
XRP turns green l XRPUSDT on TradingView
The SEC was not only pointing the finger at Ripple, as Coinbase recently did when it issued a notice to Wells about a possible violation of the securities law.
Cryptocurrency exchange Kraken suffered the same fate and had no choice but to stop providing US staking services with $30 million in compensation.
The SEC claims that its actions are aimed at protecting Americans from the risks associated with investing in cryptocurrencies. However, pro-XRP lawyer John Deaton has asked SEC chief Gary Gensler to stop claiming to be protecting the American public from cryptocurrencies.
These regulatory moves have drawn backlash from industry frontmen, including Cardano founder Charles Hoskinson. Hoskinson urged cryptocurrency enthusiasts to support pro-cryptocurrency policies in the next election to resolve regulatory issues.
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