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Ripple Writes Congress an Open Letter; Calls for Fair Crypto Regulations

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Ripple writes Congress an open letter

Yesterday, Ripple’s executive team wrote the US Congress an open letter. The officials asked legislators to stop painting the entire crypto sector with a broad brush. According to them, such treatment is unfair as most firms in the crypto sector are now responsible actors.

Brad Garlinghouse, Ripple’s CEO and Chris Larsen, the firm’s executive chairman and co-founder wrote the letter. Referring to compliant crypto projects, the executives claimed they are responsible to US and international law. On top of this, they added that such firms are responsible for serving the greater good.

The duo stated,

We don’t take for granted the vital role of central banks in issuing currencies and setting monetary policy in concert with the complex dynamics of economies around the world. For centuries, governments have been well suited for the job because paramount to the acceptance of any currency is trust.

Crypto Coins Aim to Complement Fiats, Not Replace Them

According to Garlinghouse and Larsen, crypto firms in the US and other parts of the globe use the blockchain to enable cross-border transactions. Through teaming up with financial watchdogs, they ensure efficiency and reliability in this sector. On top of this, they cut transaction costs. The duo noted that it believes crypto coins have a chance to complement existing fiats such as the US Dollar, not replace them.

They added that the blockchain and crypto sectors will bring about greater financial inclusion and economic growth. Likening the potential of the nascent industry to the impact of the internet, the Ripple heads noted that the US should lead the way toward its mass adoption. In so doing, the government would help foster this sector while protecting privacy and stability.

Calling for fair policies, Ripple noted,

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. Without regulatory clarity, we risk pushing the innovation, tax revenue and jobs that these new technologies create overseas. You have the world’s attention. Let’s come together and seize the moment.

This news comes as the US Senate is set to hold a debate on crypto and blockchain policies on July 30. The Committee on Banking, Housing, and Urban Affairs will hold this hearing tomorrow.

Before this, Congress held several meetings to discuss Facebook’s Libra. As reported, US senators grilled the social firm on trust issues regarding its coin. Apart from trust issues, Senator Jon Tester asked about the coin’s ability to prevent loss of funds and fraudulent purchases. David Marcus, the head of Calibra noted that they would work on resolving such issues as soon as possible. In response, Tester asserted that it is key to resolve such an issue before the coin goes live.

Do you think Congress will heed Ripple call for fair crypto and blockchain regulation? Let us know in the comments below.

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