Susan Friedman, an executive at Ripple, acknowledged that the US crypto policy is pushing business activity abroad, as she called attention to a session held by Coinbase CEO.
Brian Armstrong, CEO at Coinbase, recently held a Twitter Spaces session in which he and three other speakers analyzed how the unfavorable policy surrounding crypto in the United States could threaten the country’s national security.
The recently-concluded Twitter Spaces session was hosted and moderated by Armstrong, and featured comments from different individuals, including Faryar Shirzad, Coinbase’s Chief Policy Officer; and Anja Manuel, a member of the Board of Directors at Ripple.
— Coinbase (@coinbase) April 21, 2023
Through the session, the speakers aimed to highlight the potential detrimental effects the US policy on cryptocurrencies has on the country’s national security. Faryar Shirzad, who also worked on the US National Security Council for three years, clarified that national security also entails the strength of the United States in terms of finance and technological innovation.
Shirzad emphasized that crypto technology is “a huge next profound step in the evolution of the internet.” He stressed that the global battle among nations to gain an edge in the crypto and digital asset scene will ultimately determine which nation will be the leader in the future of the internet and its impact on economy and financial systems.
Speaking further, Shirzad implied that it is the duty of the US government to ensure that the country is ahead of the curve when it comes to innovation and financial evolution, especially regarding crypto and blockchain. However, the prevalent regulatory unclarity surrounding the sector is counterproductive to this cause.
Ripple Executive Reacts
Responding to the views shared in the session, Susan Friedman, Head of Policy at Ripple, acknowledged that the lack of regulatory clarity for the crypto industry in the US is pushing business activity abroad, and away from the country. According to her, this limits the ability of the government to monitor these businesses for illegal activity.
The US failure to adopt clear crypto regulations means driving activity offshore, which restricts our ability to monitor for illicit and criminal activity – the exact opposite result of what critics are calling for. https://t.co/Fa8Wq5GUyk
— Susan Friedman (@ss_friedman) April 21, 2023
Friedman also called attention to the disparity that exists between the United States and the European Union in terms of crypto regulations, especially with the recent development surrounding the Markets in Crypto Act (MiCA).
The EU Parliament recently voted in favor of passing the legislation, marking the first ever extensive regulatory framework for the cryptocurrency industry in the world. Following the consensus, the MiCA regulatory framework is expected to take effect in 2024.
“While the US continues to focus on enforcement instead of clarity, the EU has taken a big leap forward with a sensible, progressive approach to crypto regulation,” Friedman remarked, echoing the widely-held belief among crypto investors and firms in the United States.
While the US continues to focus on enforcement instead of clarity, the EU has taken a big leap forward with a sensible, progressive approach to #crypto regulation. We look forward to building and growing in the European marketplace! 🇪🇺 https://t.co/0NW8vchHxA
— Susan Friedman (@ss_friedman) April 20, 2023
She further revealed that Ripple is looking forward to building and growing its presence in Europe. Stuart Alderoty, Chief Legal Officer at Ripple, previously disclosed in a CNBC interview that the technology company is already looking to expand to Europe due to the regulatory issues in the US. Alderoty also recently hinted at an expansion in London.
Furthermore, as previously reported, Brian Armstrong revealed at the recently-concluded FinTech Week in London that Coinbase is contemplating leaving the United States due to the regulatory uncertainty.