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Ripple CTO: difficult to open new crypto businesses in the US

According to Ripple's CTO, David Schwartz opening new cryptocurrency businesses in the US could be difficult, due to US regulators.

Ripple USA - CTO of Ripple: difficult to open new crypto businesses in the USA

The CTO of Ripple David Schwartz said in a statement that it could be increasingly difficult to open new businesses focused on cryptocurrency in the United States due to the response that the US regulatory authorities are giving to the industry crypto. Indeed, the answer might help XRP but also at the same time damaging the companies that they are still expanding. 

Ripple's CTO points out how companies operating in the cryptocurrency sector would like to start a business in the US and consequently face a daunting regulatory environment. Indeed, as defined by US regulators of overlapping regimes, where bodies such as the Financial Crimes Enforcement Network, the SEC and Commodity Futures Trading Commission may not reach a consensus on the characteristics of digital assets.

For this reason it is difficult to understand which laws apply and how. Generally, this does not happen in other countries since the control body that creates the rules it is only one and at least we are talking to the right institution.

The United States it is one of the few countries in the world where it is possible for regulators to turn to a cryptocurrency company even after five years, saying that what was done was illegal.

Right now, in fact, Ripple is facing a lawsuit that was filed by the SEC in December last year and denouncing the company suddenly. According to the SEC, the sale of XRP allowed an unregulated offering of equity securities. That's why, according to Schwartz, crypto companies, being aware of a repressive action, would struggle to grow in the United States.

Finally, it should be noted that since the SEC filed this lawsuit there have been numerous exchange of cryptocurrencies they have decided to suspend trading on XRP, or to remove the token from their platforms. At the same time, MoneyGram has also decided to close its partnership with Ripple.

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Silvia Faenza

Graduated in Political Science and International Relations at the University of Salento, in the 2014. From 2015 he is in charge of content management for online companies and publishing agencies, mainly as a ghostwriter, copywriter and web editor.

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