- Ripple’s Policy Counsel has highlighted the consequences of the lack of regulatory clarity in the US.
- The crypto industry’s offshore push will prevent the US’ ability to monitor illicit activity in the industry.
- Coinbase (NASDAQ:COIN) and Gemini are among the top firms looking to set up new trading venues abroad.
Susan Friedman, the International Policy Counsel for Ripple, recently took to Twitter to highlight the consequences of American crypto firms moving abroad as a result of the United States’ failure to adopt an appropriate regulatory regime for the crypto industry.
Friedman’s comments came in response to a Twitter spaces session titled “Crypto Policy and National Security”, which saw participation from Coinbase CEO Brian Armstrong, Haun Ventures’ Chief Policy Officer Tomicah Tillemann, Coinbase’ Chief Policy Officer Faryar Shirzad and Ripple board member Anja Manuel.
According to Friedman, the United States’ failure to adopt clear crypto regulations has led to crypto activity moving offshore. With the industry moving out of American jurisdiction, the ability of US law enforcement to monitor illicit and criminal activity has been restricted considerably. Friedman argued that this was the exact opposite outcome of what critics had been calling for.
Faryar Sharzad, who previously served as the Deputy National Security Advisor for the George Bush administration, pointed out that the technological edge that the country derives from domestic innovation, was a crucial part of the United States. One of the latest leaps in innovation has been in the crypto space and that space is now looking to move offshore.
All the speakers in the spaces session agreed that the offshore push by crypto firms in the United States was a concern in terms of national security. Gemini has become the latest crypto firm to announce a non-U.S. crypto derivatives platform that will not be available to clients in the US. Last week, reports started circulating about Coinbase setting up a crypto derivatives platform in Bermuda.
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