The CEO of Ripple, Brad Garlinghoue, believes that the support for cryptocurrency regulation within the US is bipartisan and bicameral. He’s increasingly confident that the US would attain revolutionary regulatory clarity for the crypto market in 2023. Furthermore, the CEO of Ripple took it to Twitter and stated that the US wouldn’t start regulating cryptos from scratch. He named the Securities Clarity Act, the Responsible Financial Innovation Act, and the Clarity for Digital Token Act as a few examples.
Today is the first day of the 118th Congress. While prior efforts at regulatory clarity for crypto in the US have stalled, I am cautiously optimistic that 2023 is the year we will (finally!) see a breakthrough. A thread on why…
— Brad Garlinghouse (@bgarlinghouse) January 3, 2023
Similarly, the CEO of Ripple categorically mentioned that bills aren’t perfect under any circumstances. Keeping that in mind, they might not satisfy everyone equally. He believes that efforts to pursue a perfect bill must not stall the regulation process. Garlinghouse believes that the US is following in the footsteps of different countries that include Japan, Brazil, Singapore, and many more. In addition, the CEO of Ripple pointed out that an improper regulatory framework in different countries might end up posing negative effects. He linked the collapse of FTX with the phenomenon. Apart from this, Garlinghouse tweeted that the building blocks for crypto regulation have already been set up. According to him, proper regulation would offer a chance to make things right for people interested in crypto.
Ripple can simply be defined as a financial technology company that operates both XRP and the RippleNet payment network. Previously in December 2020, the SEC issued a lawsuit against Ripple. The SEC believed that Ripple sold XRP as an unregistered security. The allegations against Ripple also included the firm raising billions of dollars through XRP sales while failing to legally register.
Would Regulations be Even Worth it?
Over the course of time, many regulatory bodies have jumped in, in an effort to greatly regulate cryptocurrencies. Such a move follows after the start of the crypto winter, and the losses suffered. The fundamental goal of these regulatory bodies is to make crypto safe for trading for everyone. However, regulating cryptocurrencies might just not be worth it.
As of now, the regulatory status of cryptos is still widely unclear. Many governments are working to regulate them as securities, currencies, or both. A sudden implementation of regulation might make the existing situation in the crypto market even worse. Buying or selling cryptos might become difficult. Similarly, regulations might even result in a market-wide drop as well.