Ripple Takes Lead in Crypto Regulatory Fight in Washington D.C.

In the wake of last year’s catastrophic collapses involving Celsius Network, Voyager Digital, FTX, and other major players, the world of cryptocurrency faced a turbulent period, leaving countless investors in a state of uncertainty.

However, as 2023 unfolds, there is newfound hope on the horizon as Ripple, a prominent player in the crypto sphere, takes center stage in Washington D.C. to champion a crypto-friendly regulatory bill.

Crypto Bill in the Making

Ripple is boosting high after its partial win and CEO Brad Garlinghouse found it the best time to lead a delegation of senior executives in Washington D.C. for the high-stakes crypto bill with Congress. 

A significant turning point occurred on July 13, 2023, when U.S. District Judge Analisa Torres issued a Summary Judgment ruling that effectively gave Ripple the green light to continue its business operations within the United States. This ruling clarified that Ripple did not violate U.S. securities laws with its distribution of XRP tokens through cryptocurrency exchanges.

While the SEC seeks permission to appeal this decision, the possibility of a jury trial looms on the horizon, with potential commencement in the second quarter of 2024. This ruling has reopened doors for Ripple in the U.S. market.

Ripple’s Advocacy Efforts

CEO Brad Garlinghouse, alongside key figures such as Chief Legal Officer Stuart Alderoty and Vice President Rob Grant, is spearheading the discussions with Congress. Garlinghouse has laid stress on the direct communication with the elected members, stating, “Can’t get regulatory clarity without actually engaging with the elected officials who are proposing bills!”

Challenges and Changing Perspectives

However, the initial bill aimed at redefining how crypto assets are regulated in the financial sector faced strong opposition from some Democrats on the committee. They argue that the bill is too favorable to the crypto industry and could pose financial risks and increase the potential for fraud. Recent support for Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act by nine senators has raised questions about its potential impact on Bitcoin and institutional involvement in the crypto market.

Ripple is Back in Action!

Overall, this visit to Washington D.C. signals a noteworthy shift in Ripple’s approach to the U.S. market. Ripple in its new appearance is fearless, previously constrained by the SEC lawsuit, Ripple’s interactions with U.S.-based clients and partners had been limited. The win has boosted the company’s morale and they are very much keen to get hold of the market again with a new vision and new policies. 

Among the key bills under discussion are the revised Financial Innovation and Technology for the 21st Century Act, as well as the ‘Clarity for Payment Stablecoins Act of 2023’. The latter bill is still in the process of garnering support from U.S. Congress members.

Ripple the torch bearer in all the crypto regulatory cases will lead this discussion to open the gate for new adoption on the horizon.