Ripple v. SEC will have some far-reaching implications for the crypto-industry. In fact, as former SEC Commissioner Joseph Grundfest recently suggested in a letter to Jay Clayton, the Ripple lawsuit will cause “multi-billion dollar losses to innocent third parties.”
The lawsuit in question alleges that XRP is a security that must be registered with the agency, and it is not, in fact, a currency outside the regulator’s purview. Calling the SEC’s move an attack against crypto, Ripple CEO Brad Garlinghouse had stated,
“Chairman Jay Clayton – in his final act – is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH.”
While this lawsuit has raised concerns about the potential characterization of cryptocurrencies as securities, the graver concern is perhaps the impact of these regulatory actions on crypto-innovation in the United States.
It’s not just the SEC that can be held accountable for potentially stifling crypto-innovation here though, as the U.S Treasury’s new proposed rule isn’t exactly favorable for the space either. The resulting implications can’t be good for the industry and it may well lead to the mass exodus of crypto-companies from the U.S.
But, how likely is this scenario? How likely then is it that companies would just pack up and leave?
Crypto-companies outside the U.S
There’s good reason to believe that the United States is at the head of crypto-innovation in the world. After all, not only is it host to a…