Ripple CEO Brad Garlinghouse and executive chairman Chris Larsen wrote the letter in light of ongoing investigations from U.S. Congress prompted by plans from social media giant Facebook to develop a cryptocurrency. Earlier this year, Facebook announced that it would be working in collaboration with several other fintech companies to launch a blockchain-based payments system called Libra. However, the plans have raised serious concerns amongst U.S. authorities due to the massive user base that Facebook has access to (not to mention the company's prior indiscretions).
Authorities are reportedly concerned that the Libra platform could be used for fraudulent activities such as money laundering or terrorist financing, prompting Ripple to question whether their XRP token may attract similar scrutiny. Rather than wait for regulators to contact them, Ripple appears to have chosen to address any concerns proactively.
A call for progressive regulation
In the letter, which begins "please do not paint us with a broad brush", Garlinghouse and Larsen go to great lengths to assure regulators that their company will do everything necessary to remain compliant with U.S. law. "We are responsible to U.S. and international law. We are responsible to serving the greater good,” the letter states.
Prior to Facebook's plans, the cryptocurrency industry operated largely under the radar and, until now, has not been perceived as a serious threat by any major government. However, with the announcement of Libra, Facebook has succeeded in catapulting the industry into the spotlight, giving regulators no option but to begin developing a long-overdue legal framework.
As outlined in its open letter, Ripple urges lawmakers to work with blockchain companies to help the industry progress, rather than stifle it with overbearing regulations. "We urge you to support regulation that does not disadvantage U.S. companies using these technologies to innovate responsibly", the letter continues, "and classifies digital currencies in a way that recognizes their fundamental differences."
The investigation from U.S. congress continues this week with a debate entitled: "Examining Regulatory Frameworks for Digital Currencies and Blockchain."
XRP in the Markets
Ripple's XRP token and the cryptocurrency market as a whole has recently suffered some losses, but analysts believe gains are on the horizon. Throughout this year, the individual XRP asset price has managed to hold its position above $0.30, building strong support at the level.
The lack of volatility that XRP experiences compared to other cryptocurrencies makes it an ideal token for real-life use cases. In addition to this, the stability provided by a professional company like Ripple helps to give it a high level of authority in the markets.
As the popularity of the token increases, several retailers are beginning to accept XRP as a means of payment. Users wishing to use XRP tokens to make purchases can find a list of retailers at newly launched crypto directory site Crytpwerk. Through the use of a cryptocurrency payment gateway like Coinpayments, merchants and retailers can quickly and easily add XRP as a means of payment both in-store or online.
Backed by a strong team of developers and business professionals, Ripple and XRP promise to bring cryptocurrency to mainstream markets in a positive way. As technological and regulatory concerns are continually addressed and improved upon in a proactive fashion, we are likely to see both Ripple and the XRP token enjoy a bright future.