{"id":223287,"date":"2021-04-09T21:00:00","date_gmt":"2021-04-09T18:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-isnt-prepared-to-regulate-new-industries-like-crypto-says-ripple-cto\/"},"modified":"2021-04-09T21:00:00","modified_gmt":"2021-04-09T18:00:00","slug":"us-isnt-prepared-to-regulate-new-industries-like-crypto-says-ripple-cto","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-isnt-prepared-to-regulate-new-industries-like-crypto-says-ripple-cto\/","title":{"rendered":"# US isn’t prepared to regulate new industries like crypto, says Ripple CTO"},"content":{"rendered":"

“# US isn’t prepared to regulate new industries like crypto, says Ripple CTO <\/strong>”
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David Schwartz, chief technology<\/a> officer at Ripple Labs, says U.S. regulators\u2019 response to the crypto industry may help XRP in the end but is also likely to hurt burgeoning companies.<\/p>\n

The Ripple CTO told Cointelegraph he believed many crypto and blockchain firms considering getting started in the United States or relocating from abroad face a deterring regulatory environment. He described U.S. regulators as “overlapp<\/a>ing regimes” wherein bodies like the Securities and Exchange Commission, Financial Crimes Enforcement Network, and Commodity Futures Trading Commission might not come to a consensus as to what is a security versus a currency in terms of digital assets.<\/p>\n

“It\u2019s very difficult to figure out which laws apply and how they apply to something new,” said Schwartz. “That you general<\/a>ly don\u2019t see in other countries \u2014 there\u2019s some entity that makes the rules and at least you know you\u2019re talking to the right party.”<\/p>\n

He added:<\/p>\n

“The United States is one of the few countries where there’s this very palpable risk that the regulators will turn to you and say, ‘That thing that you were doing for five years, in public and complete light of day? Well, you should have known it was illegal all along.'”<\/p><\/blockquote>\n

Schwartz\u2019s comments come as Ripple is facing legal action from the U.S. Securities and Exchange Commission, or SEC, who filed a lawsuit in December alleging the firm, CEO Brad Garlinghouse, and co-founder Chris Larsen had been conducting an “unregistered, ongoing digital asset securities offering” with their XRP token sales. The CTO said he had been wary of regulators coming down on Ripple prior to the lawsuit, claiming any firm in the crypto space took the risk of seemingly arbitrary crackdowns.<\/p>\n

“If we pass regulations that slam the door shut on innovation and say ‘well, we’re going to grandfather these other projects and make it very very difficult for new projects to compete with them,’ that’s great for XRP,” said Schwartz. “That\u2019s great for me, but as a human being who wants the best solutions for the world, that\u2019s not a good solution.”<\/p>\n

Since news<\/a> of the lawsuit broke, several crypto exchanges have suspended the trading of XRP, or delisted the token entirely. Global money transfer service MoneyGram has also reportedly terminated its partnership with Ripple. <\/p>\n

Ripple\u2019s position in response to SEC lawsuit has been to claim that XRP is more like Bitcoin (BTC) or Ether (ETH), both of which the regulatory body has classified as commodities. However, Schwartz\u2019s claims that regulators are implying Ripple “should have known” XRP was an illegal security offering may carry some weight. The SEC took roughly eight years to file a lawsuit after the token was first released in 2013, and the nature of XRP ha largely remained unchanged. <\/p>\n

\u201cMy number one recommendation to U.S. regulators is: look at the rest of the world and don\u2019t get out of step.”<\/p><\/blockquote>\n

Cointelegraph will be releasing the full video interview with Schwartz soon.<\/p>\n