One of the things that crypto investors worry of in the last months is how regulators are going to react to the crypto niche. On Friday, The US Securities and Exchange Commission sent a letter to Jay Clayton asking for clarity within the niche. Basically, the US congressmen are looking for answers straight from the agency how it plans to regulate the crypto market.
The thing with the agency is that they can’t change laws. They need the help of Congress in order to make the necessary laws as to how they can regulate financial instruments. Months ago, the SEC considered Bitcoin and Ethereum as commodities. And now, there is the highly anticipated Bitcoin ETF that could potentially become a reality.
Ripple Leading the Crypto Market?
Ripple has announced that it is going to launch its product xRapid in the coming months. And this is the reason for its bullish performance that even outperforming Ethereum for the second largest cryptocurrency spot momentarily in two occasions.
This time around, Ripple is looking to lead a group of crypto startups. The aim of this group is to facilitate lobbying lawmakers as well as regulators regarding the crypto and blockchain industry. Based on reports, Klein/Johnson Group will be helping the coalition. Klein/Johnson is a bipartisan lobby shop that has specialized in tech and financial services niche.
It gets interesting from here since the pay is going to be paid in XRP. It is going to have an equivalent of around $25,000. According to Klein, it is going to convert the price into dollars.
Who Takes Part in the Coalition?
Aside from Ripple, the foundation is going to include RippleWorks,Coil. It is a company that will help facilitate the digital payments. You also have Hard Yaka which is an investment firm that has focused on digital assets. And also, you have PolySign which is a startup crypto custodian.
Chris Larsen who works as the chairman of Ripple, he believes that the industry “is really complicated and there is a lot of misinformation out there but the good news is there is a lot of interest in this topic in D.C.”.
A Bill in The Making
On September 26, the US Congress has been pushing towards hoping to establish a bill called “Independent Financial Technology Task Force to Combat Terrorism and Illicit Financing”. This bill will most likely be an upgrade from the one that was introduced earlier this year by Tedd Budd.
As for Ripple’s chief market strategist Cory Johnson, he stated that Ripple is 100% clean and “absolutely is not a security”. Ripple has been dealing with different lawsuits lately. And this is probably one of the reasons why XRP wasn’t included by the SEC when it declared both Bitcoin and Ethereum as commodities. According to Johnson, “we don’t meet the standards for what a security is based on the history of court law”. Right now, Howie Test is done in order to determine whether or not to consider Ripple as a security. And also, it is worth mentioning that Jay Clayton mentioned that the SEC will not be adjusting the definition of securities to accommodate cryptos.