Wednesday, July 28, 2021
Home Crypto News Market Ripple CTO: US Not Prepared To Regulate New Industries Like Crypto

Ripple CTO: US Not Prepared To Regulate New Industries Like Crypto

- Advertisement -

Ripple Labs CTO David Schwartz said that the United States is not prepared to regulate new industries such as cryptocurrency.

He said the recent reaction of US regulators toward the crypto industry could ultimately hurt new fast-growing industries.


David Schwartz described that agencies such as the Securities and Exchange Commission (SEC), Financial Crimes Enforcement Network, and Commodity Futures Trading Commission can not reach a consensus on what constitutes a security versus a currency in terms of digital assets.

As a result, many crypto and blockchain related companies operating within the US have a lot of uncertainty about the regulations of their business activities.

According to Schwartz, it is currently very difficult to find out the exact laws that apply to the companies dealing in crypto and blockchain. You generally see less problems in other countries, because crypto market is regulated by a single entity Outside US.

He said:

“It’s very difficult to figure out which laws apply and how they apply to something new,” said Schwartz. “That you generally don’t see in other countries — there’s some entity that makes the rules and at least you know you’re talking to the right party.”

Schwartz added the following:

“The United States is one of the few countries where there’s this very palpable risk that the regulators will turn to you and say, ‘That thing that you were doing for five years, in public and complete light of day? Well, you should have known it was illegal all along.”

Schwartz’s response is not unexpected. Ripple is in the middle of a lawsuit against the US SEC. SEC filed a lawsuit against the crypto company last December. According to them, Brad Garlinghouse’s firm sold unregistered XRP tokens.

Since the news, Ripple’s XRP token has been temporarily suspended from various US cryptocurrency exchanges. The global money transfer service MoneyGram has also paused its collaboration with Ripple.

However, according to Ripple, XRP tokens are cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). These cryptocurrencies are classified as commodities by the US SEC. This allows legal trading of crypto in the country.

Merchant token ico

It is shocking that SEC filed a case against Ripple after 8 years of Ripple Birth.

“My number one recommendation to U.S. regulators is: look at the rest of the world and don’t get out of step.”

 

- Advertisement -
Albert Brownhttps://thecryptobasic.com/
Albert Brown has obtained his master's degree in Stock Trading And Investing. His specialty is analyzing the price actions of crypto and stock markets. Albert provides a major role in TheCryptoBasic as a crypto analyst. He is also known for his work on Twinkle Magazine and TipRanks.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

The Graph to use Polygon for its billing system

Singapore, Singapore, 28th July, 2021, Polygon proof-of-stake (PoS) is an Ethereum scaling solution whose ecosystem attracts the brightest developers from all over the world....

Coca-Cola To Launch First-Ever NFT Collectibles

Coca-Cola and Tafi became partners as Tafi is designing virtual wearables for Coca-Cola's first-ever non-fungible token (NFT) collectibles to celebrate International Friendship Day on...

Binance CEO Aims To Make Binance Regulated Worldwide, Also Daily Withdrawal Limit For Binance Unverified Accounts Reduced And Binance Leverage Trading Limit Reduced

Changpeng Zhao, Binance CEO and Founder, stated that Binance will work with local regulators in order to establish Binance regional headquarters.

Utah Resident, A Dogecoin Fan Selling His Home For Crypto Offers a Generous 10% Discount only If He Is Paid In Doge

According to local TV station KUTV (Video Below), an American citizen from Utah joined the ranks of those selling their property for cryptocurrencies. Utah Resident,...

Panther Protocol Partners with Vegaswap

Midtown, Gibraltar, 27th July, 2021, Panther Protocol, the privacy protocol, has partnered with Vegaswap, the automated market maker (AMM) protocol with multichain support. Vegaswap is...

European Digital Identity: Talao Announces Professional Credential Solution

Paris, France, 27th July, 2021, Talao, a blockchain-based Digital Identity specialist for the Human Resource industry, today announced a professional credential application to transform...

Vechain CEO, Sunny Lu Interview By Fenbushi Capital, Sunny Lu Talks About Partners, Investors And The Three Historic Choices

VeChain CEO, Sunny Lu, was interviewed by Fenbushi Capital for their Distributed Entrepreneurship Column. Sunny talks partners (DNV, PwC), investors (Fenbushi, Fenchain), and the three...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.

follow us in feedly