The US has had a sturdy stand on cryptocurrency and blockchain trading. The position, however, seems to be affecting big guns in the industry. As a result, a group of companies led by Ripple has joined hands to try and convince the US legislators to implement a friendly crypto environment.
In this move, Ripple among other small start-ups will somewhat pay lobbyists in crypto. This declaration comes after the coalition stated that it would hold on a cooperation lobbyist fir, Klein/Johnson Group, which is the linchpin in Fintech problems.
The US individuals were suspended from buying or mining cryptocurrencies for some reasons. First, the state believes the use of digital currency will be used by the majority to evade paying tax. Second, villain states will use the currency and bypass the US warrants. Also, it was noted that this form of currency would facilitate illegal activities.
The climate around the US regulatory agencies such as SEC (the Securities and Exchange Commission) is making the group of major players in the industry feel endangered. These regulatory agencies have been on the hunt to shut down ICOs and illegal cryptocurrency projects. Instead of handling them like special assets or commodities, they were being treated as securities.
As of this publication, the government of US is split on how to control the cryptocurrency sector. The primary concern for the split is on how to define different kinds of cryptocurrencies that fall in the utility tokens, commodities or securities tokens categories.
Securing America’s Internet of Value Coalition is the name these major players are calling themselves. They are optimistic that the US will validate their request and allow a friendly crypto ecosystem. Above all, this will be powering force pushing and funding demonstrative legislation expected to come out of DC.
Executive chairman of Ripple, Chris Larsen said the following regarding the new collaboration:
“We understand this cryptocurrency/blockchain is complex, and there is a lot of misguidances out there. The good news is that in DC, there is a lot of interest in this topic.”
Lobbyist will be earning 25K USD per month from the coalition on top of the 10k XRP tokens that will be taken as cash in all reports to the federal lobbying companies.
Larson explained that the move to make part of the payments in digital form was a deliberate as they can study the game. As a result, they will be a position to represent cryptocurrency, XRP to be specific before legislative supremacy.
Larsen stated:
“It gives them some upside and some risk as well. Hopefully, they will get a taste of the industry in a way that hits home.”
Uncertainty surrounding Cryptocurrency Constitution and Definition
Cryptocurrencies do not fall under the very same regulatory umbrella, and this is the reason to why it’s hard to classify them. Still, this is why it’s hard to divide roles amongst the US several regulatory agencies like the CFTC and the SEC.
Multiple courts of US have added more confusion with their rulings. The most recent is that of the federal judge who announced that digital currencies should get treated as the commodities. The judgment in question is a vow that the CFTC, not the SEC should take problems surrounding cryptos care. These are good news to the crypto investors.
In a ruling, the judge responsible for making the decision said:
“the Congress enacted the securities policies to balance investments, in whatever form they are made and by whatever name they are called..”
After changing lobbyist minds in DC, the chances are that might help stimulate friendly cryptocurrency policies which are needed with the industry. Investors are monitoring how regulatory firms are reacting to products such as the Bitcoin (BTC) ETF and Bakkt, the forthcoming cryptocurrency exchange.
Considering all the legal trouble Ripple has been facing in the past, this indeed looks to be a right investment of time and sources by the blockchain firm.
And of course, if the group succeeds in making US government understand the way they want, it will be a massive win for not only Ripple or the group of businesses standing by side of it but the whole crypto industry. Time will tell if US regulators change its mind regarding crypto or not; still, the group deserves a thumbs up.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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