The United States has had a solid position on the cryptocurrency and the blockchain trade. The position, however, seems to influence the big guns in the industry. As a result, a group of companies led by Ripple has joined together to try to persuade US lawmakers to implement a friendly cryptographic environment.
In this move, Ripple, among other small start-ups, somehow will pay the lobbyists in the crypt. This statement comes after the coalition has declared it would engage in a cooperation lobbyist, the Klein / Johnson group, which is at the heart of Fintech's problems.
For some reasons, US individuals have been suspended from buying or extracting cryptocurrencies. First, the state believes that the use of digital money will be used by the majority to evade the fees paid. Second, the evil states will use the currency and ignore US mandates. Furthermore, it was noted that this form of money would facilitate illegal activities.
The climate surrounding US regulatory agencies such as the SEC (the Securities and Exchange Commission) is endangering the group of key players in the industry. These regulatory agencies have been chasing shut down ICOs and illegal cryptocurrency projects. Instead of handling them as special goods or raw materials, they were treated as titles.
Starting from this publication, the US government is divided on how to control the cryptocurrency sector. The main concern for the division is on how to define different types of cryptocurrencies that fall into the categories of utility tokens, commodities or securities tokens.
Ensuring the Internet of Value Coalition of America is the name that these great actors call themselves. They are optimistic that the US will validate their request and will allow a friendly encrypted ecosystem. Above all, this will fuel the force by pushing and financing the demonstration legislation that should come out of DC.
Executive Chairman of Ripple, Chris Larsen stated the following regarding the new collaboration:
"We understand that this cryptocurrency / blockchain is complex and that there are a lot of mistakes out there." The good news is that in Washington there is a lot of interest in this topic. "
The lobbyist will earn $ 25K a month from the coalition in addition to the 10k XRP tokens that will be cashed out in all reports to federal lobbying companies.
Larson explained that the move to be part of digital payments was deliberate as they can study the game. As a result, they will be able to represent the cryptocurrency, the XRP will be specific prior to legislative supremacy.
"It gives them a certain advantage and some risks as well – it's hoped they'll get a taste of the industry in a way that hits home."
Uncertainty surrounding Constitution and definition of cryptocurrency
Cryptocurrencies do not fall under the same regulatory umbrella, and this is why it is difficult to classify them. However, this is why it is difficult to divide the roles between the United States different regulatory agencies such as the CFTC and the SEC.
More courts in the United States have added more confusion with their decisions. The most recent is that of the federal judge who announced that digital currencies should be treated as raw materials. The judgment in question is a vote according to which the CFTC, not the SEC, should take problems regarding the care of the encrypted. This is good news for cryptic investors.
In a ruling, the judge responsible for the decision declared:
"The Congress has promulgated securities policies to balance investments, in whatever form they have been made and by whatever name they are called …"
After changing the minds of lobbyists in DC, it is likely that this can help stimulate friendly cryptocurrency policies that are necessary with industry. Investors are monitoring the way regulatory companies are reacting to products such as the Bitcoin ETF (BTC) and Bakkt, the next cryptocurrency.
Considering all the legal problems that Ripple has faced in the past, this actually seems to be a fair investment of time and resources on the part of the blockchain society.
And, of course, if the group manages to make the US government understand how they want, it will be a great victory not just for Ripple or the group of companies that belong to it, but for the whole industry. crypto. Time will tell if the US regulators change their mind about crypto or not; again, 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 in-depth research before investing in any cryptocurrency and read our full disclaimer.
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