A recent publication from Stanford University has brought attention to the potential strategic value of Ripple, criticizing US lawmakers for delaying regulations that are impacting the company’s competitiveness.
In a post on X, a prominent XRP community influencer known as WrathofKahneman (WOK) highlighted a Stanford paper that delves into the significance of cryptocurrency in upholding US monetary supremacy. The paper specifically points out Ripple, noting its potential strategic importance to US policymakers. This discussion has ignited a debate about the US government’s approach to regulating crypto.
Ripple’s Potential and Regulatory Challenges
The Stanford paper underscores the importance of creating a conducive environment for Distributed Ledger Technology (DLT) companies, particularly entities like Ripple, within the United States. Ripple is praised in the paper as a private sector payment network processing over $1 billion in daily transactions with a vast global reach.
The paper argues that the uncertain regulatory landscape in the US has hampered Ripple’s ability to compete, innovate, and grow. It suggests that US lawmakers should recognize the value and strategic significance of Ripple, calling for a more defined regulatory framework to support Ripple and similar enterprises. Clarity in regulations could facilitate the expansion of these businesses on a global scale while enhancing the US financial infrastructure.
Community Responses and Political Ramifications
Following these revelations, members of the community have intensified discussions on the role of US lawmakers in regulating crypto. Some individuals have expressed frustration, highlighting the long-standing strategic importance of companies like Ripple.
One commentator, Dan Thurman, highlighted the potential advantages of USD stablecoins backed by US Treasuries, which could stimulate demand for sovereign debt and enhance liquidity in the debt market. Nevertheless, he acknowledged the challenges posed by the growing interest of over 100 nations in the BRICS alliance.
WrathofKahneman responded to queries about the strategic intentions of US officials, suggesting that a blend of ignorance and financial interests might be at play. However, he clarified that this was his personal opinion without concrete evidence. Another commentator expressed skepticism about Congress being unaware of the benefits of blockchain technology, hinting at possible corruption as a more plausible explanation.
Ripple’s Legal Dispute with the SEC
Adding to the regulatory uncertainties, Ripple’s Chief Legal Officer, Stuart Alderoty, shed light on the latest developments in the company’s legal battle with the SEC, as reported by The Crypto Basic on June 17. On March 22, the SEC had proposed fines of nearly $2 billion against Ripple for allegedly violating federal securities laws through unregistered sales of XRP to institutional investors.
Alderoty strongly criticized this demand as ‘absurd.’ The proposed fine included a civil penalty of $876.3 million, disgorgement of the same amount, and $198.15 million in prejudgment interest, totaling close to $2 billion.
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