David Schwartz, the chief technology officer at Ripple, has suggested that the company might consider closing its operations in the United States.
Yesterday, the executive of Ripple and designer of XRP Ledger, David Schwartz, tweeted in response to rumors about a concerning tweet he had posted earlier. In his latest tweet, he indicated that the company might be considering closing its operations in the United States, and he used the phrase “walk through a door and slam it shut” to express this idea.
“I hope we don’t get into a position where we’re tempted to walk through a door and slam it shut behind us.”
In his most recent tweet, Schwartz mentioned that leaving the United States would not be his preferred option but implied that Ripple might be forced to take that route if there were no other alternatives. He further stated that there were other opportunities outside of the United States, and Congress had the ability to alter the current situation.
“I hope we don’t run into a situation where we have to make any choice like that,” Schwartz wrote. “Keep in mind, while the stakes are high, they’re not quite as high as this suggests. After all, this is only the US. There’s quite a bit more to the world. And Congress can change the laws.”
According to Yassin Mobarak, the founder of Dizer Capital, the recent comments from Schwartz may be interpreted as hinting at potential future events, even though they are not definitive statements. Mobarak mentioned that Schwartz had made vague remarks in the past that hinted at upcoming developments, such as suggesting to XRP holders to take profits before the Wells notice against Ripple was made public.
However, Schwartz’s recent Twitter cover photo has added to the speculation and rumors about Ripple’s plans, leading to further discussions and analysis.
“When a scrappy financial startup takes on a web of corruption and betrayal to bring instant payments to the masses, they learn that the cost of disrupting the status quo is higher than they could ever have imagined, forcing them to decide between their vision and their survival,” the text in the cover photo reads.
https://twitter.com/JoelKatz?t=Q4AY_fnIwNgYudZvd3UjKg&s=09
Read more: Deaton Analysis: Ripple May Agree to $250M Settlement with SEC
Deaton Reacts
Predictably, Schwartz’s recent remarks have received a reaction from attorney John E. Deaton.
John E. Deaton, representing numerous XRP holders as a friend of the court in the SEC’s case against Ripple, responded to Schwartz’s comments. He mentioned that the remarks emphasized the importance of XRP holders having legal representation in the lawsuit, which aims to determine whether XRP is a security. Deaton also stated that Ripple’s main obligation was to itself as a company.
Read also: Ripple Community Outraged by Removal of Forbes Article on SEC Treatment
The lawyer rebutted opposing perspectives by emphasizing that Ripple’s defense strategy includes arguing that they have no obligation to repay or compensate XRP holders.
It’s important to highlight that the legal dispute has been pending for more than two years, both sides have submitted all necessary documents and arguments, and now the case is awaiting a decision from the court.
It is worth noting that Ripple’s CEO, Brad Garlinghouse, has frequently emphasized that 95% of their customers, who joined after the SEC lawsuit, are located outside of the United States. He also recently urged cryptocurrency community members to seek guidance from other countries, as he noted that some jurisdictions are developing clear regulations for the crypto industry.
Considering the current regulatory landscape in the United States, it would not be unexpected to observe an increasing number of crypto companies shifting their focus outside the country. How such a move would impact XRP holders within the U.S. is uncertain. As of writing this, Schwartz has not responded to requests for comment.
