As the United States regulatory bodies debate about cryptocurrencies, stiff regulation may result. Brad Garlinghouse, CEO Of Ripple sent an open letter to the U.S congress along with the co-founder and executive chairman, Chris Larsen. The goal of the letter was to explain all the differences between the digital currencies and various blockchains. Can Ripple convince Congress that it is different from the rest?
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Do not Paint us with a Broad Brush
In the letter, Garlinghouse penned:
“Dear Congress, please do not paint us with a broad brush”
The main goal of this statement is to show that all blockchain and crypto companies are different from one another. It also means that when there is no regulatory clarity, it affects jobs, tax and innovation which the blockchain industry has to offer.
A few months ago, the regulatory bodies in the U.S started to tighten regulation on crypto. Some startups were first hit and then some key officials have spoken negatively about cryptocurrencies. One such prominent figure is Donald Trump, the president of the United States. Trump mentioned in a tweet that cryptocurrencies are the main tools used by criminals for illegal purposes.
These events have led Ripple to attempt to clarify its stand in the industry to prevent the implementation of any regulation that can stifle the growth of XRP.
The letter says:
“Many in the blockchain and digital currency industry are responsible actors. We are responsible for U.S. and international law. We are responsible for serving the greater good.”
Crypto Won’t Replace The U.S Dollar
The letter also said that cryptocurrencies cannot take over the role of central banks. The role of the central bank to set monetary policies and issue currencies is still sacred. It will not affect the complex dynamics of the world economies.
Garlinghouse and Larson also said that Ripple does not want to replace the U.S dollar. However, the goal of the company is to employ innovations in different partnerships with regulated financial bodies to make the process of moving money across borders cheaper, more efficient and more reliable. The pair also stated in the letter that they believe digital currencies can act as a part of existing fiat currency such as the USD and not replace them.
Also, the letter said that the industry still has a lot of offer and it may just be the next big thing. It urged the lawmakers to avoid restrictive strategies because they may be detrimental to both innovation and technological profiles of the country.
”As it did with the internet, the U.S. has the chance to lead the way, nurturing this economic opportunity while continuing to protect privacy and stability. 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.”
Other Blockchain Companies are Trying To Reduce Strict Crypto Regulations
Ripple is not the only blockchain company that has spoken up about the effects of stricter regulations. KIK, a Canada based startup has also expressed dissatisfaction with the way it was regulated. KIK sued the SEC after regulators came down on the firm for breaching its securities law in an ICO in 2017 worth near $100 million.
Also, Facebook’s Libra has been uncertain since Congress debated about it. Garlinghouse believes that Libra is responsible for the stricter regulations the crypto industry may face soon.
Ripple is already under scrutiny as its native currency, XRP’s status is still uncertain. Will this letter be enough to convince the lawmakers when they assemble on July 30?