Stanford Paper Cites Ripple Potential Strategic Value to US Policymakers

1. A Stanford paper highlights Ripple potential strategic value, criticizing US lawmakers for regulatory delays affecting competitiveness.

In a post on X, pseudonymous XRP community influencer WrathofKahneman (WOK) spotlighted a Stanford paper discussing the role of crypto in maintaining US monetary dominance. The paper specifically mentions Ripple, highlighting its potential strategic value to US policymakers. This discussion has sparked debate about the US government’s crypto regulatory approach.

Poignant paper out of Stanford about crypto & guarding US monetary dominance, that mentions #Ripple's "potential strategic value." Critical of US lawmakers compromising the strategic position of USD by dragging their feet on regulations. https://t.co/vR0JXQldof pic.twitter.com/43eAemmssc

— WrathofKahneman (@WKahneman) June 17, 2024

Ripple Potential and Regulatory Hurdles

The Stanford paper emphasizes the need for the US government to foster a business-friendly environment for Distributed Ledger Technology (DLT) companies, particularly those like Ripple. The paper touted Ripple as a private sector payment network that handles over $1 billion in daily transactions and boasts a huge global reach. 

It argues that the uncertain regulatory landscape in the US has hindered Ripple’s competitiveness, research advancements, and growth potential. 

The paper suggests that US legislators should recognize the strategic intelligence and value Ripple offers, advocating for a clearer regulatory framework to support Ripple and similar companies. This regulatory clarity could enable such businesses to expand globally while contributing to US financial infrastructure.

Community Reactions and Political Implications

Reacting, community members intensified the debate on the role of US lawmakers in crypto regulation. Some individuals expressed frustration, pointing out that the strategic value of companies like Ripple has been evident for years. 

One commenter, Dan Thurman, emphasized the potential benefits of USD stablecoins backed by US Treasuries, which could drive sovereign debt demand and create liquidity in the debt market. However, he also acknowledged the challenges posed by the growing interest of over 100 nations in the BRICS alliance.

WrathofKahneman responded to questions about whether US officials’ actions were strategic or based on ignorance. He suggested that a combination of ignorance and financial interests might be at play, though he admitted this was his personal opinion without concrete proof.

I think it's likely ignorance, combined with FI's lining pockets, to safeguard interests in the short term, but just my opinion, I couldn't prove it.

— WrathofKahneman (@WKahneman) June 17, 2024

Another commenter expressed disbelief that Congress could be ignorant of blockchain’s benefits, hinting at possible corruption as a more plausible explanation.

Ripple’s Legal Battle with the SEC

Adding to the regulatory turmoil, Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted a development in the company’s ongoing legal battle with the SEC, per a June 17 report by The Crypto Basic. On March 22, the SEC had proposed nearly $2 billion in fines against Ripple for alleged violations of federal securities laws through unregistered sales of XRP to institutional investors. 

However, Alderoty deemed this demand ‘absurd.’ The proposed fine included a civil penalty of $876.3 million, disgorgement of the same amount, and $198.15 million in prejudgment interest, totaling nearly $2 billion.