Last Thursday Bloomberg News announced that Ripple would be at the forefront of a crypto coalition that will seek broad-based support from US lawmakers. Numerous crypto firms based in San Francisco will be teaming up with bipartisan lobby group Klein/Johnson to push for a greater regulation in the crypto space.
The USA is home to some of the largest financial markets in the world, but the US government has been slow to create a regulatory framework for crypto development. Ripple is leading the formation of the new lobby, called “Securing America’s Internet of Value Coalition”, which will be focused on making the US a viable country for blockchain and crypto investment.
Other nations have been far more aggressive towards crypto development, and may be creating a first-mover advantage. Singapore and Hong Kong have both taken an accommodate stance towards cryptocurrencies, with Hong Kong actually changing their immigration law to attract talented blockchain developers. The same can’t be said for the USA, which has been extremely slow to create regulations for a sector that is growing rapidly.
According to Bloomberg, the Securing America’s Internet of Value Coalition will be targeting the US Congress, as well as the Internal Revenue Service (IRS) and Securities and Exchange Commission (SEC). The report also stated there would be some money on the line. The preliminary agreement between the new coalition and Klein/Johnson was said to be worth $25,000 a month and 10,000 in XRP on a monthly basis.
Klein/Johnson is said to be interested in converting the XRP into cash, which will be disclosed on the lobbying forms that are required by federal law in the USA. The executive chairman of Ripple, Chris Larsen, stated that the program is “really complicated,” as there is a lot of “misinformation,” floating around.
Regardless of the mixed-signals, RippleWorks, Coil, PolySign, and crypto investment company Yaka are all reported to be involved in this new effort. A greater level of clarity in the US towards cryptocurrencies couldn’t come at a better time. There is a lot of money flowing into crypto and blockchain development globally. The USA is at a relative disadvantage, especially given the federal government’s reluctance to clarify their legal stance towards cryptos.
Holding Some XRP Might be a Good Idea
Ripple has been a market-darling of late. After going neck and neck with Ethereum last week to be the second largest crypto by market cap, Ripple seems to have pulled into the lead over the weekend. Both platforms are being widely used in the blockchain community, and the recent price rise in Ripple seems to have consolidated positive market sentiment for further gains.
Nigel Green who heads up the Dubai based deVere Group which has more than 30,000 clients, and $10 billion USD of crypto assets under management. According to a recent interview with Forbes, Mr. Green sees XRP topping the $1 USD level by the end of the year. He also thinks that,
“Cryptocurrencies are the future of money and, clearly, XRP is proving to be one of the most useful cryptocurrencies for businesses, organizations, and individuals. The use of XRP is set to increase, and naturally, this will positively impact its price. I think it is likely that we’ll see it hit the $1.00 price level before year-end. It could even be double this in 12 months’ time as XRP adoption and usage soars.”
Unlike many cryptocurrencies that are chasing niche markets with novel technology, Ripple designed its platform to integrate easily with the global banking system. It also offers its users fast settlement times, which are a major stumbling block for Ethereum and Bitcoin.
It has certainly been a rough year for Ripple’s price. The token entered 2018 above $2.5 USD, and last traded around $ .60 USD. Over a long-term time horizon, XRP could make sense both as a company and an investment. Their recent move to help cryptocurrencies gain regulatory support in the USA shows their commitment to building a market for their product, and helping others gain access to a stable legal environment.