A recent paper from Stanford University has brought attention to the potential strategic value of Ripple, while criticizing US lawmakers for causing regulatory delays that are impacting the company’s competitiveness.
In a post on X, an influential member of the XRP community known as WrathofKahneman (WOK) highlighted the Stanford paper, which delves into the role of cryptocurrency in upholding US monetary dominance. The paper specifically mentions Ripple, praising its potential strategic importance for US policymakers. This discussion has sparked a debate about the US government’s approach to regulating cryptocurrency.
The Stanford paper underscores the importance of creating a supportive environment for companies working with Distributed Ledger Technology (DLT), particularly Ripple. It lauds Ripple as a private sector payment network that handles over $1 billion in transactions daily and has a substantial global presence. However, the paper points out that the uncertain regulatory landscape in the US is hampering Ripple’s competitiveness, research endeavors, and growth prospects.
The paper suggests that US lawmakers should acknowledge the strategic significance and value that Ripple brings, and calls for a clearer regulatory framework to benefit Ripple and similar companies. Such regulatory clarity could facilitate the expansion of these businesses on a global scale while strengthening the US financial infrastructure.
In response to this discussion, members of the community have intensified the debate on the role of US lawmakers in regulating cryptocurrency. Some have voiced frustration, highlighting the long-standing strategic value that companies like Ripple offer. Dan Thurman, a commenter, emphasized the potential advantages of USD stablecoins backed by US Treasuries, which could drive demand for sovereign debt and enhance liquidity in the debt market.
WrathofKahneman addressed questions about the intentions of US officials in their regulatory actions, suggesting that a mix of ignorance and financial interests may be at play. However, he noted that this was merely his personal opinion without concrete evidence. Another commenter expressed skepticism about Congress’s ignorance regarding the benefits of blockchain technology, hinting at possible corruption as a more plausible explanation.
In addition to these regulatory challenges, Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted a recent development in the company’s legal battle with the SEC. According to a report by The Crypto Basic on June 17, the SEC had proposed nearly $2 billion in fines against Ripple for allegedly violating federal securities laws through unregistered sales of XRP to institutional investors. Alderoty dismissed this demand as ‘absurd,’ noting the exorbitant civil penalty, disgorgement amount, and prejudgment interest included in the proposed fine.
It is important to note that this content is informative and not intended as financial advice. The opinions expressed in this article are personal and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic is not liable for any financial losses incurred.
