Two of the Ripple officials created a video a couple of days ago where they discussed the vital topic of crypto regulation. The blockchain firm’s Head of Government Relations affirmed that the USA must regulate the cryptos fairly.
The cryptocurrency industry is once again under the spotlight in 2019. Not because of the price recovery or the crypto winter, but because one of the world’s largest companies and most recognizable brands are joining the crypto space.
The crypto community from around the world has been speculating about the possibility of Facebook launching its own cryptocurrency for over a year, now. Each time Facebook announced that it is looking for developers, the community took it as a hint that their blockchain research is advancing.
Facebook finally admitted to making plans to launch its very own coin by publishing its white paper, announcing the coin’s name — Libra. The world reacted, and the interest in cryptocurrencies surged once more. However, there is still a noticeable lack of regulations concerning cryptocurrencies in countries around the world, and particularly in the US. And Ripple among all the cryptocurrency projects, in particular, has been working hard for proper crypto regulations.
The situation in the US is critical, as many are hoping that it would set an example by regulating cryptocurrencies and blockchain technology. However, there is still a question of how such regulatory framework might affect the crypto and blockchain space?
Policymakers cannot bring such regulations easily, and there needs to be a balance between customer protection and fostering innovation.
In other words, the crypto sector must not be regulated too strictly, as it is a growing industry that needs space to evolve. This is not only the case in the US, but in the rest of the world, as well. Ripple seems to be having an excellent understanding of this very concept.
The world looks towards USA: American must set a proper example
The Global Head of Government Relations at Ripple, Michelle Bond, recently talked about this very topic with Monica Long, Ripple’s SVP of Marketing. They also touched upon what might be lying further down the road for the cryptocurrency sector.
Previously, Bond stated that every jurisdiction in the world is keeping its eye on the fintech space, and especially on crypto and blockchain industries. The US Senate hearings back in July attempted to evaluate what impact can be expected if digital assets were to be regulated. Their concern was how crypto regulations might affect the growth of the industry and its economic development.
Not too long ago, Ripple CEO, Brad Garlinghouse, as well as the co-founder and Executive Chairman, Chris Larsen, wrote an open letter to US Congress. They insisted that legislators need to support fintech policy that would foster innovation and classify cryptocurrencies in a way that would recognize their fundamental differences.
As for the global situation, there are numerous governments whose policymakers are collaborating to establish such regulations. Some regions already have crypto-friendly policies in places, such as Abu Dhabi, Singapore, Switzerland, and even the UK. These policies address the risks of working with cryptocurrencies, but they also leave enough room for innovation and further evolution of the crypto sector.
One example is the UK’s recent decision to classify Ripple’s XRP as a non-security — something which was very debatable in the coin’s past. The US SEC’s Hester Peirce recently noted that these frameworks could act as a model for other countries, and help those with less clarity in regards to the crypto sector make the right decision.
Undoubtedly, governments and their regulators are under a lot of pressure to regulate the crypto space. They have been receiving requests to do so for years now, and these requests will only get more common as the crypto industry matures and evolves even further.
The US seems to be in the heart of everything, as it is one of the most innovation-supporting countries in the world. As such, it can set an example and the tone that others could follow. This is why the US regulators must make the right call. That’s precisely what Ripple and the rest of crypto firms want, ‘right call.’
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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