The move by Ripple Labs to go overseas comes as a result of its Executive Ryan Zagone applying to be part of the EU taskforce which will be developing the 'Markets in Crypto-Assets Act.' This is the EU's regulatory framework that will oversee stablecoin usage in the region.

It is unclear at this time what Ripple is planning for the future, however, it seems that the US SEC's strict regulations are pushing the company to make a move from the country. Companies such as Ripple Labs are worried that the US is not creating regulatory clarity which is a key part of the crypto market.

Ripple Labs’ Ryan Zagone is looking to be part of the EU taskforce which is developing the ‘Markets in Crypto-Assets Act’ for stablecoins. The US’s Securities and Exchange Commission’s (SEC) “regulation by enforcement” approach has caused many American crypto companies to think about relocating overseas, in response to the lack of regulatory clarity provided by the SEC. The US House Committee on Financial Services Republicans stated that such regulations threaten American investors’ and the industry’s competitiveness, while also urging the SEC to bring clarity on the same.

Ripple International Policy Counsel Susan Friedman has confirmed that the SEC’s lack of clarity is a primary factor in innovation relocating abroad. She also pointed out that major players in the crypto space have acted on that basis by moving away to places such as Europe. This move has become necessary to counter the fear that the SEC’s regulations are pushing innovation out of the US.

The Markets in Crypto-Assets Act is intended to provide predictability and transparency to the crypto industry, while also helping to protect consumers with balanced regulatory measures. Some of the topics the taskforce intends to address include the following: fund-raising activities, exchange services, custodial wallets, AML/CFT, Regulation of secondary market activities, applicable supervisory measures, and government addresses.

The American crypto industry has highlighted the SEC’s failure to provide clarity as a major issue, and as a result, many companies are turning to overseas markets for their innovation needs. Companies such as Ripple Labs have had to look for viable options to stay competitive - one of which is to submit the company's top executive to join the EU taskforce that is building the Markets in Crypto-Assets Act.



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