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Stifling US regulations is the main reason US is losing in the fintech race

TL;DR

  • US regulations not helping the FinTech Industry 
  • Ripples may move company headquarters because of unfavorable US regulations

US regulations are compromising the growth of the financial technology industry. This was made known by Dan Tapiero, one of the founders of 10T Holdings, in a recent tweet.

Tapiero cited former Ripple CEO Chris Larsen, who had earlier disclosed how the unfavorable government policies could make his organization and others think of moving out of the country. Tapiero made it known that industry player hands could be forced to leave the country if there is no improvement in the US regulations.

Ripple labs already thinking of relocating because of US regulations

Brad Garlinghouse, CEO of Ripples, had also tweeted about his concerns on the hostile US regulations that had made working in the industry quite difficult for most market players. 

His concern was heightened when the United States Department of Justice announced its intention to have some crypto regulations enforced on cryptocurrency companies. The Department made it known that its focus was on the private coins and that traders can be unidentifiable during their trade activities in the market.

Chris Larsen had also reiterated the concerns of Ripples in a Blockchain Summit, where he disclosed Ripples’ intention of moving its headquarters outside the country.

Chris cited China as an example of a country that is currently enticing the FinTech industry due to its commitment to enabling innovations and its $1.4 trillion investment.

He further said that the SEC is not encouraging US FinTech to keep up with other world players, and instead, they are doing the exact opposite with their many regulations.

What the future holds for cryptocurrency

Presently, the US government under President Trump does not show a positive inclination towards the use and acceptance of Cryptocurrency. More information to follow.

US regulations and policies have led to China dominating the crypto mining industry as over 60% of all mining is done in the Asian country. More information to follow.

However, this could change if Joe Biden emerges as the President as his administration may impose carbon taxes on mining activities done within the US’s border.

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Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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