Ripple CEO, Brad Garlinghouse, and Executive Chairman and Co-founder of Ripple, Chris Larsen, expressed concerns regarding regulatory ambiguity in the United States. In an open letter to the U.S. Congress on July 28, 2019, both top executives stated that lack of clear cryptocurrency regulations is bound to stifle crypto business in the U.S. and create an exodus of virtual currency exchanges.
Cryptocurrency Needs Nuanced Regulations
The strict regulatory climate for cryptocurrency and the lack of uniform crypto regulations in the United States have caused virtual currency exchanges to shutter business in favor of jurisdictions with friendlier and clearer crypto regulations.
In addition, the U.S. stance on digital currency is felt by U.S. traders who continue to be geofenced. Back in May 2019, Poloniex delisted nine crypto tokens from the U.S. markets due to unclear regulations. The exchange later moved its services to Bermuda, with unrestricted access for non-US customers.
Joining the voices of other stakeholders in the digital currency industry, Ripple’s Brad Garlinghouse and Chris Larsen recently wrote to the U.S. Congress regarding regulatory clarity. While praising the role of central banks, the pair said that the virtual currency sector wasn’t intended to displace fiat including the U.S. dollar, but rather complement them.
Furthermore, the Ripple executives urged Congress not to implement regulations that would discourage responsible cryptocurrency exchanges.
An excerpt from the letter reads:
“We urge you to support regulation that does not disadvantage U.S. companies using these technologies to innovate responsibly, and classifies digital currencies in a way that recognizes their fundamental differences—not painting them with a broad brush. Without regulatory clarity, we risk pushing the innovation, tax revenue, and jobs that these new technologies create overseas.”
Also, against the popular notion that the digital currency industry is mostly about fraud and money laundering, Garlinghouse and Larsen said the sector has more good actors than bad ones who abide by the rules.
All Cryptos Aren’t the Same
In May 2019, United States Congressman, Bradley Sherman, sought to introduce a bill that would ban cryptocurrencies, as they threaten the power of the U.S. dollar
BTCManager recently reported that U.S. President Donald Trump, in a series of tweets, made negative comments against bitcoin, Facebook’s Libra, and cryptocurrency in general. The President went on to say that unregulated virtual currencies serve as weapons for illicit activities, arguing that the U.S. dollar is the most reliable currency.
Garlinghouse, however, did not like the crypto bashing by the U.S. President. Garlinghouse believed that Ripple shouldn’t be lumped with crypto platforms with questionable operations.
Also, Steve Mnuchin, Treasury Secretary of the U.S., expressed doubts about Libra complying with anti-money laundering (AML) regulations.
But Binance CEO, Changpeng Zhao, didn’t seem fazed by the anti-crypto energy oozing out of the U.S.; CZ believes that whether or not the U.S. decides to ban digital currency, the overall condition of the industry would not be affected.