The regulatory spotlight came into focus last year as Celsius Network, Voyager Digital, FTX, and other prominent companies faced significant setbacks, affecting millions of investors overnight. Since then, investors, critics, and traders have been eagerly anticipating the introduction of a crypto-friendly regulatory bill.
Is the Crypto Bill Making Progress? Ripple CEO Shows Support!
Ripple is experiencing a surge in momentum following its partial victory, and CEO Brad Garlinghouse believes it’s an opportune moment to head a delegation of senior executives to Washington D.C. for crucial discussions on the high-stakes crypto bill with Congress.
In a historic moment on July 13, 2023, U.S. District Judge Analisa Torres issued a Summary Judgment verdict, giving the green light to Ripple’s business activities within the United States. The ruling made it clear that the company had not violated U.S. securities laws in its distribution of XRP tokens through cryptocurrency exchanges. While the SEC is seeking permission to appeal this decision, the prospect of a jury trial is on the horizon, with potential proceedings starting in the second quarter of 2024. This ruling has effectively reopened opportunities for Ripple in the U.S. market.
Key Figures Set to Discuss the Crypto Bill
CEO Brad Garlinghouse, accompanied by prominent individuals including Chief Legal Officer Stuart Alderoty and Vice President Rob Grant, is leading the conversations with Congress. Garlinghouse has emphasized the importance of direct dialogue with elected representatives, stating, “Achieving regulatory clarity necessitates active engagement with the elected officials who are proposing these bills.”
However, the initial legislation aimed at redefining how crypto assets are regulated in the financial sector faced strong opposition from certain Democrats on the committee. They argue that the bill is overly favorable to the crypto industry and may pose financial risks and increase the potential for fraud. Yet, we have witnessed a change of stance, as Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act recently garnered support from nine senators, raising questions about its potential impact on Bitcoin and institutional involvement in the cryptocurrency market.
Ripple’s Bid for a Comeback
In a broader context, this visit to Washington D.C. signifies a significant shift in Ripple’s approach to the U.S. market. Previously constrained by the SEC lawsuit, Ripple’s engagements with U.S.-based clients and partners were limited. The recent legal victory has bolstered the company’s confidence, and they are now eager to regain a foothold in the market with a fresh vision and updated policies.
Among the pivotal bills currently under discussion are the revised Financial Innovation and Technology for the 21st Century Act, as well as the ‘Clarity for Payment Stablecoins Act of 2023.’ The latter bill is still in the process of garnering support from members of the U.S. Congress.
As the torchbearer in the realm of cryptocurrency regulatory cases, Ripple will lead these discussions in an effort to pave the way for new opportunities on the horizon.
