Stuart Alderoty, the Chief Legal Officer (CLO) of Ripple Labs, has recommended that the United States follow the example of Singapore and other countries that have established well-defined regulatory frameworks for the digital asset industry.
US scares off cryptocurrency businesses
The US is driving away crypto businesses due to a lack of rational regulations. Unlike regions such as Singapore, the UK, Europe, and Dubai, where crypto innovation is thriving, the US appears to prioritize politics over sound policies. Ripple’s Chief Legal Officer (CLO) expressed concerns about this disparity, particularly after Ripple obtained a Major Payments Institution (MPI) license in Singapore. Interestingly, Coinbase also received the same license shortly before Ripple.
The increasing number of applications for such licenses indicates that many crypto entities are seeking to relocate their operations outside the US. Regulatory bodies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the US are actively impeding the progress of these crypto businesses through lawsuits and crackdown measures.
Full Singapore Embrace
In a stark contrast to the US, Singapore has embraced crypto-based companies and gained international acclaim for its progressive approach to crypto regulation. While Coinbase and Binance faced SEC lawsuits in the US for alleged violations of federal securities laws, Singapore has been accommodating and supportive.
The SEC lawsuits categorized coins like Solana (SOL), Cardano (ADA), Polygon (MATIC), Decentraland (MANA), Axie Infinity (AXS), and others as unregistered securities. Kraken, too, settled with the regulator for $30 million and suspended its cryptocurrency staking service for US customers.
Singapore has positioned itself as an ideal hub for businesses and financial institutions to leverage the full potential of digital assets in various use cases, including cross-border payments, crypto liquidity, and Central Bank Digital Currencies (CBDCs).