Blockchain-based cryptocurrencies, including Ripple’s XRP, live in a gray area in most of the world. Why? Because very few of the world’s governments are taking them seriously enough to come up with regulations. A few have issued some bans and limitations, but a full regulatory network is lacking in almost every country on the planet.
While that lack of legislation has allowed the cryptosphere to roam free all over the planet (for the most part), it also induces mistrust in the traditional financial system and prospective new cryptonauts who don’t want to join an industry that could go down the drain because it lives in the legal limbo.
The situation is particularly acute in the US, which is a relevant country not only for Ripple but the entire crypto world. The SEC should be in charge of producing the appropriate regulatory framework for the cryptocurrency market, and it’s famously studying it. However, it’s been dragging its feet, taking things very slowly and so far it’s managed to issue just a handful of announcements that are neither very clear nor very influential as regulations go.
In this context, it’s good to find out what the opinions of the crypto verse’s leaders are. Are they happy with the current lack of limitations (which also implies a lack of guarantees)? Would they prefer to remain free and unregulated? Or would they rather have a regulatory framework that would enhance the credibility of cryptocurrency projects?
We don’t know what the answers are as it pertains to every leader of every blockchain project. But we do know what Ripple’s leadership thinks about this.
— Michelle Bond (@michellebond111) September 6, 2019
Michelle Bond serves as Ripple’s head of government relations and she went on the record explaining why it’s crucial to have “regulatory clarity” for all digital assets in an interview she granted to Ripple Drop, episode 15, which is something of a news show that Ripple produces to keep its users and investors informed about the company and the XRP currency.
Mrs. Bond explained that it would be terrific to have a clear regulatory framework. Notice the emphasis on clarity, here. She started by looking at both sides of the coin. For the government, a clear set of regulations is a desirable goal to meet because it promotes innovation and technological progress.
It also would create jobs and new tax income. The other side of the coin, as per Ripple official, the businesses, also need clarity in regulations because they need to know they’re standing on solid ground before risking capital and energy into a project that could evaporate into the air if the rules are delayed for much longer, or turn out to be murky or hostile.
She expressed a preference for principle-based regulations. According to Ripple’s executive, that kind of regulations are adaptable, workable, and predictable at the same time, so they provide certainty to all parties involved.
A rule-based alternative would be more rigid and static, she continued to explain, and it could become outdated very quickly in an industry that changes very rapidly. Such a scheme would fail to foresee new technological developments that would then bring crypto back to a legal void.
Ripple’s Government Relations Head kept emphasizing the critical status of clarity for any legislation that could come because everybody in crypto will need to know precisely what’s allowed and what’s not.
She explained that the regulations should include a set of relevant (and, again, clear) definitions, just as the UK is attempting to do these days. The difference between every kind of token must be well outlined as well as the difference between digital assets and securities (this last issue has been a bit of a headache for Ripple).
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.