Ripple CEO Brad Garlinghouse has given more insight on the company’s possible move away from the U.S., saying the legal status of the XRP cryptocurrency is key.
- Talking to CNBC Friday, Garlinghouse said his blockchain payments infrastructure company could potentially move to London, where XRP is not considered a security by the regulating Financial Conduct Authority.
- The firm may also consider other nations that take a similar stance.
- Ripple is closely tied to XRP, using the token to move value within some of its institution-focused payments products, as well as helping its development.
- In the U.S., though, Ripple is fighting a legal battle with investors who claim XRP is an illegally issued security, while the Securities and Exchange Commission has not been clear on the issue and has been taking actions against some token-based projects.
- “What you see in the U.K. is a clear taxonomy, and the U.K.’s FCA took a leadership role in characterizing how we should think about these different assets and their use cases,” Garlinghouse told CNBC.
- With the FCA “clarifying” that XRP is not a security and is used like currency, it would be “advantageous for Ripple to operate in the U.K.,” he said.
- Ripple is also considering Switzerland, Singapore, Japan and the United Arab Emirates as potential bases, he added.
- The report comes after Ripple’s Executive Chairman Chris Larsen made similar comments early in October, suggesting the firm could abandon the U.S. over its hostile stance toward the cryptocurrency industry.