According to a July 30 post on Ripple’s page, the importance of regulating cryptocurrencies was discussed. Also, the reasons behind the dangerous backlog of US orders.
Importantly, some US authorities take advantage of the benefits of this new technology. For example, the US Consumer Financial Protection Bureau (CFPB) and the US Currency Validation Office.
What’s at stake for the United States when it comes to regulating cryptocurrencies?
Now, there is a change in the world with cryptocurrencies. As is known, recent news indicates that the industry is moving forward, with sophisticated financial institutions and flexible central banks. This bodes well for the adoption of cryptocurrency regulation around the world.
Which jurisdictions will lead this important change?
It should be noted that, in the United States, Securities and Exchange Commission (SEC), has taken control of the oversight of cryptocurrencies. The SEC initially took office, due to the need to stop the abuses seen during the Initial Coin Offering (ICO) craze.
Essentially, the SEC has placed cryptocurrency regulation in an old regulatory framework that governs elements including orange groves, oil rigs, whiskey, and public telephones, among others. In reality, rules that do not conform to this emerging technology.
To this end, Congress can help by passing sensible laws. Another alternative is that the SEC and the Commodity Futures Trading Commission (CFTC)Join forces and develop a workable framework that protects the integrity of markets and consumers.
What cryptocurrencies are “securities”?
Of course, if complex and onerous securities regulations are misapplied, they could stifle innovation in the industry.
It should be noted that the SEC has exempted two cryptocurrencies from the securities laws, Bitcoin and Ethereum. For the other cryptocurrencies, the SEC has remained silent, unless it has decided to regulate them through enforcement procedures.
Importantly, the SEC has approved only two cryptocurrencies, both controlled by China.
The technological cold war between the United States and China
It should be noted that at least 65% of Bitcoin mining is concentrated in China. As a consequence, China can effectively block or reverse transactions.
To this end, China has already created a national digital payments oligopoly, operated by companies such as Alipay and WeChat. So, China is also about to issue a state-controlled digital currency: a digital yuan.
Unquestionably, these scenarios aren’t just bad for US economic players. They are also detrimental to anyone concerned about financial inclusion and the development of an economic system for Blockchain and cryptocurrencies.
Ripple’s role and the regulation of cryptocurrencies
For its part, Ripple does not try to avoid regulation, on the contrary, it calls for intelligent, transparent and principled regulation.
Rather, it urges lawmakers to support regulation that does not penalize responsible American companies. Its goal is to work with regulators, governments, and central banks to improve the way the world moves money.
The U.S. Consumer Protection Agency recognizes the potential of XRP
The Consumer Financial Protection Office (CFPB), has recognized the role of Ripple and XRP in cross-border transfers.
According to the May 11 document, the CFPB has been investigating new trends in the remittance market. Among one such development is the continued growth and expanding partnerships of cryptocurrency companies, such as Ripple.
The CFPB also noted that XRP can be used to effect cross-border money transfer settlement. He added that the company’s suite of products could allow banks and credit unions to know the exact final amount that the recipients of remittance transfers will receive before sending them.
Finally, I give you this phrase by Jean de la Bruyere: “A quality of Justice is to do it promptly and without delay, making it wait is injustice”.
So, do you think it is important to regulate cryptocurrencies in the United States? Leave us your opinion in the comment box.