In an effort to bridge the communication gap between financial regulators and innovators building fintech, distributed ledger technology (DLT) and crypto-related platforms aimed at promoting the growth of decentralized finance (DeFi), forward-thinking blockchain entrepreneurs have launched the Alliance for Innovative Regulation (AIR). The initiative is backed by Ripple’s Chris Larsen and other big whales in the fintech community, according to an October 29, 2019 press release.
Bringing Regulators and Innovators Together
Whilst Bitcoin (BTC), altcoins, and blockchain technology have shown in recent times that they have what it takes to enhance the operations of a vast array of industries in the global economy, the disconnect between regulators and innovators is impeding the growth of these new technologies.
Against that backdrop, Jo Ann Barefoot, CEO of Barefoot Innovation Group, and David Ehrich, co-founder of fintech credit card startup, Petal, have launched The Alliance for Innovative Regulation (AIR).
As stated in the release, the primary objective of AIR is to bridge the gap between regulators and innovators and make it easier for the former to integrate innovative technologies into their operations and organizational DNA, while also formulating amenable regulations that will allow blockchain startups to thrive.
That’s not all, AIR also aims to foster collaboration between fintech big whales, financial institutions and regulatory agencies, enabling them to join forces to modernize the existing financial regulatory system.
Backed by Ripple and Others
The team says AIR is already gaining grounds in the United Kingdom and it recently collaborated with the Financial Conduct Authority (FCA) to organize TechSprint, a hackathon on financial regulation.
AIR says it has already gotten the backing of leading fintech entrepreneurs, venture capitalists, founders, and CEOs, including the Chairman of Ripple, Chris Larsen, Raul Vazquez, Opportun; Colin Walsh, Varo Money; among others.
Reportedly, AIR has succeeded in raising $2 million in funding from fintech entrepreneurs and firms that share its vision and has also received a 3-year seed grant from Omidyar Group’s venture, Flourish.
Commenting on the launch of AIR, Jo Ann Barefoot noted that:
“Facebook’s Libra announcement is the latest recognition that fintech innovations are outpacing the tech-readiness of our system. To keep up with the exponential change of technology, regulators have to radically decrease innovation cycle-time and adapt quickly to new technologies.”
In related news, BTCManager informed on October 23, 2019, that Ripple has expanded its global regulatory team to Washington D.C., adding three more experts to its strategy team, including Craig Philips, former Counsellor to the Secretary at the U.S. Treasury Department.