Regulators Need Help to Understand Crypto, Says Rep. Emmer

Representative Tom Emmer has stated that Ripple is not a security and that it deserves regulatory clarity from SEC. In the meantime, Emmer is convinced that industry experts should continue to educate lawmakers on the good blockchain and crypto can bring on.

Ripple Deserve Regulatory Clarity Says Rep. Tom Emmer

Should the Securities and Exchange Commission (SEC) ultimately decide to regulate XRP as collateral? That is the question that has been on the minds of lawmakers in the United States for a while now. The decision could affect the price of the cryptocurrency and affect the relationship between Ripple and its strategic customers.

In particular, former CFTC Chairman Christopher Giancarlo wrote a comprehensive article in mid-June in which he explains the reasons why XRP is not qualified for securities. Ripple chief executive Brad Garlinghouse has in the past elaborated on why it is not a “safety issue.” 

Representative Tom Emmer (R) held the first-ever cryptocurrency conference in Washington DC, attended by a number of blockchain leaders. Garlinghouse, who is also an industry expert and co-founder of the Bitcoin Foundation, the world’s largest Bitcoin advocacy group, attended.

The event was held in collaboration with the Chamber of Digital Commerce PAC and featured a number of prominent figures in the cryptocurrency industry, including Bitcoin Foundation co-founder Gavin Andresen.

The biggest challenge Ripple has faced so far is the lack of clarity about the regulatory status of XRP. This is something that anyone developing the XRP community will face, as it is similar to how the SEC defines assets such as Bitcoin and Ether. Garlingshouse outlined that one of the biggest challenges Ripple faces is a “lack of disclosures” about the regulatory status of XRP, in part due to confusion about how it is defined by the SEC. 

Garlinghouse promised that Ripple would donate to Emmer’s campaign using the cryptocurrency XRP.

Lawmakers Still Need with Understanding Cryptocurrency Assets

The congressman said that senators and representatives do not understand these types of assets as well as crypto experts, as they face different challenges that span different sectors. So cryptocurrency experts suggest not leaving Washington policymakers alone but continuing to advise them on the adoption of blockchain technology, as they can usually keep pace with technological developments.

Emmer also suggested developing various ideas for the blockchain industry and mentioned that a lot of ideas have come to fruition in the cryptocurrency industry lately. 

For Congressman Emmer, the fact that two years have already passed and US regulators are still silent about cryptocurrencies regulatory prospects is completely unacceptable. Consequently, companies, including Ripple, may be forced to explore other countries with crypto-friendly regulations. 

“If the government puts up obstacles, and one of those obstacles is simply inaction, then we have less opportunity to position the US as a leader, “Emmer added. He has been a constant advocate of better education and has introduced legislation in Congress to increase transparency and transparency in the US government’s approach to crypto regulation.

Politicians Accept Donations in Cryptocurrencies

Emmer also announced at the event that they are now accepting donations in the form of cryptocurrencies for his campaign. He expressed his views on Ripple and stated that the cryptocurrency is not classified as a security. According to the recorded events, his campaigns will use crypto payment firm BitPay to process payments. Ex-presidential candidate Andrew Yang also supported crypto during his short presidential campaign that ran in February this year when many others were still uncertain.

Emmer also delivered Bitcoin-friendly remarks at the annual meeting of the Bitcoin Foundation in Washington, D.C. last week. 

The official said Bitcoin is getting stronger and the world is coming out of a coronavirus – a pandemic fuelled by the financial crisis. The XRP price has been falling steadily since the “crypto-winter” two years ago, but Bitcoin is not disappearing, it’s just not as popular as it used to be, he said. 

The recent announcement of a possible Ripple IPO has cast doubt on the benefits of XRP, as the asset is not a mandatory instrument to facilitate RippleNet transactions. Ripple plans to sell pre-dismantled tokens to raise capital to finance the development. However, in recent months there has been a push to reduce the amount of XRP sold on crypto exchanges. 

In the past, this uncertainty has been exacerbated in several lawsuits, with the charge that XRP is an unregistered security. Although first raised in 2018, the US Securities and Exchange Commission and the Federal Reserve have not taken a firm stance on the matter. 

Ripple has also come under criticism for attempts to circumvent securities laws and is currently fighting back in court against allegations that XRP was sold to investors as an unregistered security. Ripple is not the first attempt – in line with the law. In 2015, Ripple was fined $700,000 for violating banking secrecy. Emmer said U.S. authorities risk allowing local businesses to flee the United States as the government continues to kill innovation.