Ripple, one of the largest cryptocurrencies/blockchain platforms in the world, is asking Congress to be thoughtful in how they regulate digital assets going forward. In an Open Letter to Congress, Ripple management takes a very different approach in contrast to Facebook’s frontal assault with the proposed stablecoin Libra.
The missive from Ripple was published this past weekend in advance of a Senate hearing taking place today, entitled, “Examining Regulatory Frameworks for Digital Currencies and Blockchain.”
Ripple is the 3rd largest crypto by market cap at $13.5 billion, following Bitcoin and Ethereum. Ripple has targeted the global payments industry and thus may be impacted by any success of Libra.
Ripple believes crypto may compliment fiat currency like the dollar. Libra wants to undermine sovereign currency with its borderless crypto based off a basket of assets.
Ripple is certain that “blockchain and digital currencies will engender greater financial inclusion and economic growth” if it is not overregulated or legislated into oblivion.
In the end, Ripple asks Congress not to paint the industry with a “broad brush,” throwing shade at Facebook.
The letter is republished below.
Our Open Letter to Congress
Dear Congress,
Please do not paint us with a broad brush.
Many in the blockchain and digital currency industry are responsible actors. We are responsible to U.S. and international law. We are responsible to serving the greater good.
We don’t take for granted the vital role of central banks in issuing currencies and setting monetary policy in concert with the complex dynamics of economies around the world. For centuries, governments have been well suited for the job because paramount to the acceptance of any currency is trust.
Companies like ours in the United States, and others abroad, employ these innovations in partnership with regulated financial institutions to enable the world to move money across borders like it already moves information—efficiently, reliably, inexpensively. In our view, digital currencies have the opportunity to complement existing currencies like the U.S. dollar—not replace them.
Without a doubt, blockchain and digital currencies will engender greater financial inclusion and economic growth not unlike the internet’s historic impact. As it did with the internet, the U.S. has the chance to lead the way, nurturing this economic opportunity while continuing to protect privacy and stability.
We urge you to support regulation that does not disadvantage U.S. companies using these technologies to innovate responsibly, and classifies digital currencies in a way that recognizes their fundamental differences—not painting them with a broad brush.
Without regulatory clarity, we risk pushing the innovation, tax revenue and jobs that these new technologies create overseas.
You have the world’s attention. Let’s come together and seize the moment.
Respectfully,
Brad Garlinghouse, CEO of Ripple &
Chris Larsen, Executive Chairman and Co-founder of Ripple
