The way multiple financial agencies, state governments, and even the United States Congress utilize their jurisdiction is one of the reasons for regulatory complexity in the United States. This is especially true in the crypto-sector. Ripple, situated in San Francisco, is one blockchain business that understands this.
Congress is being summoned
Ripple CEO Brad Garlinghouse asked on the US Congress to play a "leadership role" in addressing the legislative issue around cryptos when responding to a law professor about their thoughts on stablecoin rules. Garlinghouse isn't the only one who thinks this way. Some members of the US Congress, according to Ripple General Counsel Stuart Alderoty, are attempting to go forward.
However, he warned that if the US continues to put off making a judgment on the issue, foreign economies might overtake it. The executive used the EU as an example in doing so.
Is it possible for crypto to become American?
Following the news that cryptocurrency is unlikely to be outlawed in the United States, investing expert Anthony Pompliano encouraged the government to take steps to promote crypto-innovation to its borders. He emphasized the need of creating a "friendly climate" for individuals in the business, adding that authorities should take the following approach:
"We'll give you a discount if you come here." We'll provide you with a sandbox to play in that isn't overburdening in terms of regulations. We'll provide you with a favorable tax climate so you can come in and construct this."
Pompliano further asserted that neither the SEC nor the Federal Reserve would be able to ban cryptocurrency. Even SEC Chair Gary Gensler has stated that a crypto-ban would be a decision made by Congress. Garlinghouse's appeal took on new meaning in light of this. But, what about the litigation between the SEC and Ripple Labs? The lawsuit will now be adjourned until next year, according to crypto-watchers, since the discovery deadline has been moved out to 14 January.
Friendly suggestions
On the 24th of October, a Ripple representative said that the company's suggestion has been included in a study on Australia's fintech regulatory framework. Ripple proposed putting in place "technology-agnostic" policies. A principles-based approach, rather than a prescriptive one, was also proposed by the San Francisco-based blockchain business. Finally, the business recommended using a risk-based strategy to protect the ecosystem while simultaneously stimulating investment.
Alderoty of Ripple appeared to applaud the action, pointing out that Australia's regulators are on the same team as industry stakeholders.
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