The CEO of blockchain-based cross-border payments network Ripple expects the US to see positive developments in cryptocurrency regulation this year.
At the opening of the 118th Congress this Tuesday, Brad Garlinghouse enumerate the main reasons why he thinks 2023 will be a watershed year for cryptocurrency regulation.
He says the push to regulate the digital assets industry has the support of Republicans and Democrats in the House of Representatives and the Senate, appointing Representatives Ro Khanna (D-CA), Tom Emmer (R-MN), Ritchie Torres (D -NY), Patrick McHenry (R-NC), Glenn Thompson (R-PA), and Senators Kirsten Gillibrand (D-NY), Cynthia Lummis (R-WY), Cory Booker (D-NJ), John Boozman (R- AR) and Debbie Stabenow (D-MI) among those who recognize the need for clarity in this area.
“We are not working with a blank slate. Previous bills have attempted to cover everything from stablecoins to CEXs (RFIA and DCEA), clearer definitions of what constitutes a digital asset security (Securities Clarity Act), rule security (Clarity for Digital Tokens Act), and more still. »
Cryptocurrency regulation bills may not win everyone’s approval, he said, but these proposals can serve as a starting point for debate in Congress.
“The building blocks of regulation have already been laid out, and we have a chance to get it right for the millions of Americans who are already – and will continue to be – interested in cryptocurrencies. »
Garlinghouse says the EU, Singapore, Brazil and Japan now have their own cryptographic frameworks and the UK is already ahead of the US. He says a lack of regulatory standards can have catastrophic consequences, such as the collapse of the Bahamas-based cryptocurrency exchange FTX.
“While previous efforts to clarify cryptocurrency regulations in the US have stalled, I am cautiously optimistic that 2023 is the year we will (finally!) see a breakthrough.
The 118th Congress has a historic opportunity to ensure that the United States remains a leader in innovation for decades to come. Let’s hope he takes it. »