As Ripple prepares to move its headquarters out of the US, it turns out that Only 5% of the company’s customers are based in the country, according to the company’s CEO.
On December 2nd, Brad Garlinghouse, CEO of Ripple, sat down for an interview with CNN host Julia Chatterley to discuss Ripple’s regulatory hurdles for operations in the United States.
According to Garlinghouse Up to 95% of the San Francisco-based company’s customers are overseas. Explaining that Ripple’s services are not that popular in the US due to the current regulatory uncertainty surrounding the related token XRP, Garlinghouse said:
“95% of our customers are customers outside of the US Only about 5% are here in the US. And people say, ‘You’re an American company […] Why?’ One of the dynamics is that American companies are waiting for clarity, and clarity is coming from the Securities and Exchange Commission. “
Garlinghouse noted that the SEC did not recognize other major cryptocurrencies like Bitcoin (BTC) and Ether (ETH) as securities years ago. However, XRP, the third largest cryptocurrency by market capitalization, still doesn’t have this clarity:
“For us around XRP and over 100 companies that work with XRP, it is very clear to me that many companies use XRP as their currency. The US Department of Justice designated XRP as currency and FinCEN XRP as currency. But he still didn’t get that clarity from the SEC. “
According to Garlinghouse, Ripple has had some issues with U.S. customers who were concerned about the regulatory status of Ripple’s XRP-related offerings.
“When I talk to customers, I often talk to them about our product, which uses XRP in payment flows. They ask me about the regulatory dynamics and we have clients say, ‘Look until there is clarity and regulatory framework, let’s go wait,’ said the CEO, adding, ‘Well that was because of the clarity and security in other countries like the UK do not. “
Garlinghouse’s previous comments would suggest so Ripple is trying to get the SEC to treat XRP the same as Bitcoin or Ether without classifying it as security.. Last month he said, “It is very difficult to see XRP as a security,” and stated that “You don’t know of a global market that thinks XRP is a security.”