Ripple (XRP) has been attracting attention in recent weeks and months with many new collaborations and integrations of xRapid. Brad Garlinghouse (CEO of Ripple) says the mainstream and banks are now ready for XRP. Recently it was even announced that now the first bank has officially included xRapid and XRP. However, legislators and regulators in the form of the SEC remain a limiting factor for the XRP adaptation.
Regulation as a bottleneck for XRP adaptation
Now, Ripples Director of Regulatory Relations reports, saying that an insecure policy is the only thing that keeps Ripples digital assets from being accepted by US banks and financial institutions. XRP needs more clarity from US regulators. During Fintech Week in Washington, DC, Ryan Zagone said XRP needs more clarity in order to move forward.
“The challenges for adaptation fall back on politics. Political uncertainty surrounding the definition and handling of some assets has limited adaptation, especially here in the US, “he said. He went on to say, “I’m talking about Ripple and XRP, which we use because it only costs half a cent per payment. It’s almost free, scaled, and with 1,500 transactions per second and almost no energy consumption, it’s very efficient. ”
XRP should be classified as BTC and ETH
Zagone said that US regulators should classify XRP exactly as they have classified Bitcoin (BTC) and Ethereum (ETH). It is amazing that BTC and ETH enjoy political clarity and security in the US, even though they are controlled from China. XRP is decentralized, open-source and has only 7% of the total validation performance. According to him, XRP has the characteristics required to get the same classification as BTC and ETH.
He made it clear that this was not an attack on BTC or ETH and that he was against one of the two coins. BTC and ETH have great potential, according to Zagone, but XRP does not have the same competitive conditions.
“We need a level playing field so that the market can choose which of the solutions it wants to use. The opposite of today’s regulatory uncertainty, which hinders precisely this. ”
The real discussion: Is a security or not?
The discussion is based on the fact that the SEC (Security and Exchange Commission) has already classified Bitcoin (BTC) as a security. Ethereum (ETH) is also unlikely to be a security, according to the SEC’s Corporate Finance Director. For XRP, however, any statement is missing, so that financial institutions have a hard time xRapid and the associated regulatory risk involved.
What do you think, how long will the SEC ripple or XRP fidget? Will that be the breakthrough for Ripple?