Ripple senior executives Andrew Whitworth and Susan Friedman have praised the United Kingdom’s approach to the crypto industry, arguing that the country was leaving the United States behind regarding crypto regulations.
The executives made these statements in reaction to the Royal approval of the Financial Services and Markets Bill, which made crypto trading a regulated financial activity within the country.
According to Friedman, the legislation represents a significant milestone in global crypto regulation. The crypto payment company executive added that the bill shows that the U.K. was leaving the U.S. behind in critical areas.
This view was also shared by Ripple’s Policy Director for EMEA, Whitworth, who described the move as the U.K. fulfilling its promise of becoming a crypto hub.
U.K.’s pro-crypto policy
The Financial Services and Markets Bill approval marked the end of a comprehensive regulatory process targeted at regulating the U.K.’s financial sector.
While the law focuses on other subjects, it includes provisions that govern cryptocurrencies and stablecoins, allowing regulators to develop a legal framework for digital assets.
Additionally, the bill recognizes stablecoins as a form of payment and makes crypto a regulated financial activity within the country. It also enforces strict monitoring of crypto advertisements and promotions.
U.S. regulatory struggles
Meanwhile, the U.S. approach to crypto regulation has drawn criticism from various crypto stakeholders.
Financial regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), are vying to oversee the emerging space, confusing market participants.
In 2023, financial regulators instigated legal action against prominent crypto firms such as Binance and Coinbase. Besides, the two regulators have lacked cohesion over classifying certain crypto assets as securities and commodities.
Ripple CEO Brad Garlinghouse noted that this regulatory ambiguity had prompted a number of U.S. crypto firms to explore opportunities in foreign jurisdictions. For example, the uncertain regulatory environment has led several crypto firms like Bittrex, Paxful, and others to exit the U.S.