“It is disconcerting to me that for three years now I’ve been asking for regulatory clarity, and we can’t seem to provide any”.
SEC Commissioner Hester Peirce, also known as “crypto mom” among the digital asset community, has voiced her bafflement at the agency’s lack of effort to provide clarity in the space.
Hester Peirce, who has recently published a statement together with Commissioner Elad Roisman against the way the agency is regulating cryptocurrencies, has delivered her harshest assessment yet at an interview with Yahoo Finance.
“It is disconcerting to me that for three years now I’ve been asking for regulatory clarity, and we can’t seem to provide any. I think this is really becoming a huge barrier to this industry being able to develop in a way that’s safe, but also in a way that allows innovation to happen. And it’s a real shame to me that we are not just taking up the mantle as regulators to develop a regulatory framework.”
SEC KEEPS ON ITS REGULATION-BY-ENFORCEMENT MODE
There are currently two out of five Commissioners publicly voicing their opposition to the SEC’s regulation-by-enforcement practice in the digital asset space.
The majority remains willing to continue to file lawsuits against established companies that have been trying to understand and follow the (rather ambiguous) regulatory framework for their activities.
Coinbase, the largest cryptocurrency exchange in the United States, has warned the public and investors that the SEC is preparing a case against the firm.
Circle, the issuer of the USDC stablecoin, has yesterday announced it is too under the scope of the securities regulator. It has received an “investigative subpoena” from the SEC’s Enforcement Division which requests “documents and information regarding certain of our holdings, customer programs and operations”.
RIPPLE PRAISED COMMISSIONER PEIRCE’S “SAFE HARBOR” PROPOSAL
Ripple Labs has recently provided feedback on crypto and blockchain laws, which can be summarized in three bulltet points: to encourage innovation sandboxes for crypto, increase public-private collaboration, and engagement & consideration by the Senate of existing legislative efforts.
The letter praised Commissioner Peirce’s proposal of a “safe harbor” under which network developers would be exempt for three years from the
registration provisions of federal securities laws, during which time they would be allowed to launch their products and develop their networks through token transactions.
If “network maturity” is achieved at the conclusion of the three-year period, token transactions would not trigger securities registration requirements, under SEC Peirce’s proposal.
Ripple also suggested the Senate to consider the two new proposed bills: the Securities Clarity Act (SCA) and the Digital Commodity Exchange Act (DCEA).
“Both the SCA and DCEA seek to provide legal clarity to industry, markets, and consumers in a way that an ad hoc, regulation by enforcement approach simply cannot.
“Moreover, these bills are an implicit acknowledgment that laws drafted for our legacy financial system cannot simply be overlaid on cryptocurrency and blockchain – rather, a tailored, flexible approach designed to address and remedy the specific challenges presented by this space is required. Ripple encourages the Senate to consider both the SCA and DCEA as they work to provide the certainty that is needed to keep industry within the United States while also maintaining the strong consumer and investor protections that have made American capital markets the best in the world”.
SEC V. RIPPLE AS THE GAME CHANGER
Talk of lack of clarity for the cryptocurrency space in the United States has been ongoing for years, but the SEC v. Ripple lawsuit has raised the stakes for everyone.
The “cryptocurrency trial of the century” is likely to set precedent and Ripple has no plans to settle for cheap. The blockchain firm eyes the lawsuit has an opportunity to help correct the regulatory environment for everyone within the crypto industry.
Using the words of Jeremy Hogan, an XRP community-friendly attorney,
XRP Holders have most recently scored a major win despite seeing its motion to intervene denied. Judge Analisa Torres has granted them the Amicus Curiae status.
Movants, in their individual capacities, shall be permitted to act as amici curiae in this action. As such, Movants shall be allowed to assist the Court by briefing legal issues relevant to the case as approved in advance by the Court”, the Order stated.
Ripple Forecast and XRP/USD Analysis October 22, 2021
XRP/USD are trading at 1.1195 and continue to move within the correction and bearish channel. The capitalization of the Ripple cryptocurrency at the time of the publication of the forecast is $52,000,913,021. Moving averages indicate a short-term bullish trend for Ripple. Prices are again pushing the area between the signal lines upward, which indicates pressure from buyers of the asset and a potential continuation of the rise in the XRP rate in the market already from current levels. At the moment, we should expect an attempt to develop asset growth and test the resistance level near the 1.1305 area. Further, a rebound downward and the continuation of the fall of the cryptocurrency to the area below the level of 0.8655.
Ripple Forecast and XRP/USD Analysis October 22, 2021
In favor of falling XRP/USD quotes, a test of the resistance line on the relative strength index (RSI) will come out. The second signal in favor of a decline in asset quotes will be a rebound from the upper border of the descending channel. Cancellation of the option of falling cryptocurrency will be a strong growth and closing of quotations above the level of 1.2805. This will indicate a breakdown of the resistance area and a continued rise in XRP/USD to the area above the level of 1.5005. Confirmation of the fall in the digital currency rate will be a breakdown of the support area and closing prices below 0.9705.
Ripple Forecast and XRP/USD Analysis October 22, 2021 implies an attempt to test the resistance level near the 1.1305 area. Where can we expect the cryptocurrency to continue falling with a potential target at the level of 0.8655. An additional signal in favor of a decline in Ripple will be a test of the trend line on the relative strength index (RSI). Cancellation of the option of falling quotations will be a strong growth and a breakdown of the 1.2805 area. In this case, we should expect a continuation of the rise in the digital currency with a target above 1.5005.
Ripple CEO Claims Ether Surpassed XRP Because of SEC
Ether took XRP’s second spot because of the SEC, says Ripple CEO Brad Garlinghouse
During his appearance at the DC Fintech Week virtual conference, Ripple CEO Brad Garlinghouse opined that the regulatory clarity that Ether, the second-biggest crypto, has received from the U.S. Securities and Exchange Commission allowed it to surpass XRP:
Within the last few years, XRP was the second most valuable digital asset. As it became given that the SEC had given a hall pass to ETH, ETH has obviously kind of exploded…That clarity has helped.
Garlinghouse adds that market forces are supposed to determine winners and losers instead of regulators.
In December 2017, XRP became the second-largest crypto but it has since slipped to seventh place.
Ether is now firmly in second place, with its market cap recently surpassing that of banking giant JPMorgan.
Garlinghouse slammed Gary Gensler for refusing to answer whether the rival cryptocurrency is a security, adding that the existing securities laws are outdated:
If laws are so clear, then let’s just say the answer to these questions.
He also praised “Twitter sleuths” who are busy dissecting the SEC’s case against Ripple.
The Ripple boss has reiterated his oft-repeated claim about the lack of clarity in the U.S. He also said that the company had signed zero new customers in the States due to regulatory headwinds, but this didn’t stop the company from expanding worldwide:
We are growing a lot more outside the United States.
China’s hostile stance toward crypto also doesn’t make a lot of sense in the long run, according to Garlinghouse.
Here’s how Ripple is expanding its footprint in Asia Pacific
Ripple is partnering with another company in Singapore to expand its services for cross-border payments in the Asia Pacific. The new partnership is aimed at expanding RippleNet’s footprint in the region by offering the fundamental infrastructures for cross-border payments for banks.
Ripple had a plan to acquire a 40% stake in Tranglo company, and the new partnership follows that intention. The first country to receive the results of the new partnership in the Philippines, and new corridors will be launched after that.
Providing the Structure for Cross-Border Payments
There are many opportunities in the Asia Pacific area for companies that are solving payment challenges. Cross-border payments are among the essential needs of banks and citizens in that region because many of the people work abroad and help their companies by sending money from other countries.
Ripple is among the most active blockchain companies that have a considerable focus on this area. The RippleNet solution has helped many big banks launch corridors for cross-border payments, and the new partnership with the Tranglo company is aimed to expand these services.
Tranglo will launch its first live On-Demand Liquidity (ODL) service on RippleNet in the Philippines in six months as the first result of the partnership with Ripple. More corridors will be introduced in the coming months. The Philippines is a very good target region for this partnership because this country is the third-largest remittance-receiving country in Asia.
Tranglo is among the best companies in East Asia, helping cross-border payments for citizens. It has supported existing RippleNet corridors in the Asia Pacific before. Companies like BKK Forex, DeeMoney, and Siam Commercial Bank use Tranglo services. These new connections help the company process more currencies in the region.
Ripple execs believe the Singapore company can help them very well in expanding footprints in the Asia Pacific region. Brooks Entwistle, Managing Director of RippleNet in APAC and MENA, said:
“The strong traction with Tranglo in the past 6 months alone is testament to how we’re executing well on our shared mission to transform the cross-border payments experience in Asia Pacific, a region which is often tricky to navigate. Tranglo’s in-depth regional experience has been extremely instrumental in expanding RippleNet in Asia Pacific, and I’m excited to see us further collaborate to scale our partnership to new heights.”
New partners using the RippleNet solution for payments means more customers for Ripple. It always has been a great goal for the company, and it seems to be working based on numerous partnerships. All of these incidents can help the XRP coin, too, by increasing the demand.