Ripple supports MiCA regulation amidst unclear US lawsuit.

The cryptocurrency payment service provider, Ripple, is continuing to expand its payment services globally despite an ongoing legal battle with the United States Securities and Exchange Commission (SEC) regarding its XRP token. In an interview with Cointelegraph at Money 20/20 in Amsterdam, Sendi Young, Ripple’s managing director for Europe and the United Kingdom, discussed the company’s growing influence worldwide despite regulatory scrutiny in the United States.

In the past year, cryptocurrency exchanges and businesses have faced challenges with U.S. regulators due to a lack of regulatory clarity, which has threatened to reduce innovation and adoption of blockchain-based services, systems, and cryptocurrencies. However, the European Union is making progress in establishing a set of requirements and standards for the cryptocurrency industry across the continent. The recent signing of the Markets in Crypto-Assets (MiCA) legislation on May 31 is a significant step towards this goal.

Young noted that there is a wide divergence in regulatory perspectives between the U.S. and Europe, which has contributed to Ripple’s growth outside of the U.S. due to more progressive regulatory oversight in different markets. She emphasized that Ripple continues to build partnerships with regulators and policymakers, with both parties educating each other as the industry develops.

Young believes that the MiCA regulatory framework will facilitate healthy competition and innovation in the cryptocurrency space, while driving adoption among traditional finance players. She highlighted Ripple’s expanding range of services, which are designed to integrate into an increasingly interconnected financial ecosystem, facilitated by crucial fiat on-ramps and off-ramps, as well as the development of central bank digital currencies (CBDCs) and stablecoins.

The ongoing lawsuit between Ripple and the SEC took an interesting turn in June 2023, as documents relating to a speech from former SEC corporate finance division director Bill Hinman highlighted contradictory viewpoints on classifying cryptocurrencies as securities.

Ripple is committed to fostering growth and innovation while complying with regulations, and Young believes that the U.K. and Europe are setting standards globally.