According to Ripple Labs CEO Brad Garlinghouse, it’s business as usual for the blockchain company in Asia despite its issues with regulators in the U.S.
Asian Market Keeps XRP Afloat
The San-Francisco digital payments firm, which is in a legal tussle with the U.S Securities and Exchange Commission (SEC) over the classification of its XRP token, says the case hasn’t had much of an effect on its operations.
During a guest talk show with network news Reuters, Garlinghouse said that its Asia interests were still thriving despite the ongoing legal storm. To him, the clear regulatory signposts in the Asia-Pacific nations have made it easier for Ripple to model its digital products to the taste of regulators.
Talking down the impact of crypto exchanges delisting its digital currency in America, Garlinghouse said that XRP was traded in 200 exchanges worldwide, and only three or four exchanges ever listed the virtual currency in the United States. Garlinghouse explained,
“We have been able to continue to grow the business in Asia and Japan because we’ve had regulatory clarity in those markets.”
Garlinghouse and Ripple have witnessed some wins in the past months. Ripple had initially suffered a slump following the lawsuit in December but has since rallied, with the majority of the crypto market posting strong gains. It also announced a pilot for its central bank digital currencies (CBDCs) private ledger targeted at countries interested in digitizing their fiat currencies.
The CBDC Private Ledger is an offspring of its XRP Ledger (XRPL) technology and will run on the same blockchain the digital currency uses.
The private transactions logbook is created for large payments and will help central banks issue and maintain their digital currencies.
Ripple has a good working relationship with APAC countries like Japan and Thailand, according to Garlinghouse. The cryptocurrency company is said to be in partnership with Japanese financial giant SBI Holdings. The Japanese powerhouse is already planning to leverage Ripple’s digital payments expertise to establish itself in the Asian continent.
Garlinghouse also spoke on the apparent lack of regulatory goalposts to guide corporate holdings of digital assets. To him, the SEC’s continued aggression will only end up stunting the growth of the crypto industry in the US.
Gensler Expected To Bring Regulatory Clarity
The Ripple case which has dragged on for months and may likely last longer, has seen crypto lawyers wade in on the discussion. Joseph Hall, a legal practitioner at David Polk’s law firm and former SEC commissioner, reportedly said the SEC was being biased in its suit against Ripple and its top executives.
To him, XRP deserves the same treatment. Stating that the SEC took a long time before it made up its mind to file a case against XRP, Hall said it may not be a slam-dunk case.
At his confirmation ceremony in Congress, President Biden’s SEC Chair pick Gary Gensler promised to bring an end to the uncertainty surrounding cryptocurrencies in the United States.
Gensler is an MIT professor who teaches cryptocurrencies, blockchain, and public policy. He had previously served as the chairman of the Commodity Futures Trading Commission (CFTC). Gensler told Congress at his confirmation hearing,
“Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they’ve also raised new issues of investor protection that we still need to attend to.”