Cryptocurrency firm Ripple has announced its acquisition of Swiss crypto custody firm, Metaco, at a time when U.S. regulators are ramping up their crackdown on companies like Ripple and Coinbase. Ripple CEO Brad Garlinghouse has warned that the “confusing” regulatory landscape in the U.S. will push more crypto firms to hire and invest outside of the country. In response to the lack of clarity on how digital assets will be regulated, European countries like the UK and Singapore are stepping up and providing a clear roadmap for entrepreneurs and investors to engage with regulators.
Expansion Plans with the Acquisition of Metaco
The acquisition of Metaco is expected to expand Ripple’s suite of products and services. The Swiss custodian is renowned for its crypto storage solutions as well as its expertise in secure workflows and digital asset management. The acquisition will also give Ripple access to Metaco’s impressive clientele, which includes BNP Paribas and Citi. Ripple CEO Brad Garlinghouse has hailed the Metaco acquisition as a perfect fit for the firm and will enable them to forge ahead with their growth plans.
U.S. Regulators Under Fire as Crypto Firms Threaten to Leave
Ripple is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC), which accuses the firm, Garlinghouse, and the co-founder of violating securities laws by selling XRP without first registering it with the SEC. The XRP is the native cryptocurrency on the Ripple network. Coinbase has also taken legal action against the SEC after months of silence from the regulator about the crypto exchange’s July 2022 petition.
Garlinghouse has expressed his disappointment with the U.S. regulators, accusing them of making it as confusing as possible for the crypto industry to understand what the rules of the road are. As a result, he said that Ripple has been forced to invest more outside of the U.S. Since the bulk of its customers come from outside the country, most of Ripple’s hiring this year will also be outside the U.S.
FTX Bankruptcy and Crypto Industry
Garlinghouse also commented on the recent FTX bankruptcy, labeling the event as a fraud. He stated that the FTX event is not specific to the crypto industry and that similar occurrences happen in traditional finance all the time.
Garlinghouse’s Outlook for Ripple
The Ripple CEO reiterated that the company is doing very well financially, thanks to its strong balance sheet. The $250 million cash acquisition of Metaco is a testament to this. Regarding Ripple’s plans to list, Garlinghouse said it is not in a hurry to list and doesn’t need more capital. The company would only consider listing at a time and place that makes sense and enhances its ability to grow the business and customer experience.