TOKYO (Reuters) – Blockchain payments firm Ripple suffered no fallout in its Asia-Pacific operations after being sued by the United States Securities and Exchange Commission (SEC), the chief executive of the United States said on Friday. society.
In late December, the SEC accused Ripple, which is associated with the cryptocurrency XRP, of leading a $ 1.3 billion unregistered securities offering.
After that, the leading US cryptocurrency exchange Coinbase stopped trading in XRP, which is the world’s seventh largest cryptocurrency by market value.
“It (the lawsuit) has hampered activity in the United States, but it hasn’t really had an impact on what’s happening for us in Asia-Pacific,” Brad Garlinghouse, chief executive of Ripple, in a video interview from California.
“We were able to continue to develop the business in Asia and Japan because we had clear regulation in these markets,” he said, adding that he was not aware of any stock exchanges outside of the states. United who would have interrupted XRP trading.
“XRP is traded on more than 200 exchanges around the world. It was actually only three or four exchanges in the United States that interrupted trading, ”he said.
Garlinghouse was one of two company executives alleged by the SEC in December to have personally earned around $ 600 million received from the unregistered offer.
Financial regulators around the world are trying to decide how they should regulate the cryptocurrency industry.
The outcome of their assessments could determine whether cryptocurrencies will become mainstream assets or remain niche products.
Gary Gensler, President Joe Biden’s candidate for the head of the SEC, promised during his confirmation hearing in Congress to provide “guidance and clarity” to the cyptocurrency market.
While bitcoin is considered a commodity by U.S. financial regulators, most other cryptocurrencies have yet to be classified as commodities or securities.
Ripple has signed more than 15 new contracts with banks around the world since the SEC filed its lawsuit, Garlinghouse said, adding that he believed the lack of clarity in the United States was a “hindrance” to l ‘innovation.
“We see that XRP liquidity activity has grown outside of the United States and continues to grow in Asia, certainly in Japan,” he said.
Reporting by Daniel Leussink; Editing by Christian Schmollinger