The Ripple CEO has been very open about what he thinks about regulation both globally and in the US. While he has been very positive about regulation worldwide, he has very serious complaints about the state of regulation throughout the US.
More specifically, the company was embroiled in a major court battle against the SEC in what could otherwise have been discussed without the pressure of the court.
While Ripple did end up winning the case itself, it did highlight a very serious issue that the country is dealing with at the moment.
Following the experience, the CEO broke his silence about the state of regulation and said that it badly needs better leadership for crypto regulation in the country.
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His words resonated with plenty of other crypto enthusiasts and executives, as they saw the SEC greatly overreaching. Therefore, many have even considered leaving the country to stop the obtrusive search from the SEC.
A lack of clarity from the SEC
Given that the popularity of cryptocurrencies has only continued to increase despite the many controversies surrounding it, the only reasonable step that many countries can take following this increased affection is to properly regulate it.
More specifically, they want to be able to properly regulate the market to ensure that people are less likely to be taken advantage of. For the most part, many countries have been more than capable of getting their regulation efforts in order.
Not only do they crack down on crypto companies without a fair warning, but the policies that they come up with are usually benefiting the company and the consumers alike. However, the US has continued to struggle to properly regulate its crypto market.
Not only does it continue to make it difficult to follow different types of crypto companies, but the free reign that the SEC enjoys is actively threatening how long these crypto companies will be able to properly function.
On one hand, it continues to take crypto companies to court to clamp down on any unauthorized decisions that they make, which could likely be anything. The important distinction between the regulation in other countries and the US often comes down to clarity.
More specifically, the SEC fails to mention what actions are illegal and what is not, which leaves a lot of companies having to walk on eggshells to make sure that they do not do anything wrong.
The US is Not Doing as well as Other Countries
One of the most important things that the US continues to struggle with despite other countries already making considerable progress in proper crypto regulation.
More specifically, the US fails to make clear regulatory policy for cryptocurrencies, which is what makes it difficult for crypto companies to operate in the country.
In fact, migratory efforts from various crypto companies have already begun as they go to countries like Australia, the UK, Brazil, and even South Korea, since they have better regulations.
The main difference between the US and these other countries in terms of regulation is that they have a very good grasp on getting all of their different types of regulatory policies through to the companies that are operating there.
How to fix this issue
According to the Ripple CEO, the only right way to properly fix this issue is by fixing the different factors that have managed to destroy it. Mainly, the SEC should have some of its powers reduced, which can make it harder for them to overstep its boundaries.
Us Congress should also step in to regulate the community properly, which it will be able to do so with the help of crypto companies coming together with policymakers to find optimal solutions to the regulatory issues that they face.
As a result, regulation in these other countries helps both companies and the traders that they are helping.