Ripple, the blockchain-based digital payment network, has announced that it will be hiring the majority of its new employees from jurisdictions with more regulatory clarity for cryptocurrencies than the United States. This decision comes after Ripple faced regulatory scrutiny in the U.S., though it won a court victory earlier this year when a judge ruled that its token XRP is not a security.
CEO Brad Garlinghouse stated in a recent interview that Ripple will be doing 80% of its hiring outside of the U.S. in the coming year. He highlighted countries like Singapore, Hong Kong, the U.K., and Dubai, where governments are collaborating with the crypto industry and providing clear rules. Garlinghouse believes that these jurisdictions offer the necessary regulatory clarity for Ripple's operations and future growth.
Although Garlinghouse doesn't believe that the U.S. is permanently excluded from being a global leader in the crypto industry, he acknowledged that it is currently in a difficult position. He expressed optimism that a change in the administration could bring positive changes for the industry. Notably, he pointed out that the SEC has repeatedly lost in court, with judges criticizing its actions as "arbitrary and capricious."
Ripple's recent court victory regarding the classification of XRP as a security is seen as a positive development for other exchanges facing regulatory scrutiny from the SEC. Ripple's Chief Legal Officer, Stuart Alderoty, believes that the ruling will have a favorable impact on other similar cases, such as the ongoing Coinbase and Binance lawsuits. The court's decision challenges the notion that digital tokens automatically make an exchange a national security exchange, providing potential relief for these exchanges.
Criticism of the SEC's approach to crypto regulation has been voiced by members of Congress, who argue that its "regulation by enforcement" strategy could hinder innovation and push the industry offshore. Senator Cynthia Lummis has called for a robust legal framework that provides clear guidelines for digital asset exchanges, rather than relying on enforcement actions that harm consumers.
