In the wake of comments made by Treasury Secretary Steve Mnuchin, the crypto industry has made a variety of responses defending digital assets and their potential. Ripple’s CEO, Brad Garlinghouse, took to his Twitter account to express his opinion regarding cryptocurrency in relation to Secretary Mnuchin’s comments. Garlinghouse said that he hopes regulators realize that not all cryptocurrencies are the same in terms of their potential use in criminal activity and money laundering.
Garlinghouse Makes Case For XRP
It is quite clear that Garlinghouse has taken the opportunity to draw attention to Ripple’s XRP and show how it can be a solution to the challenges raised by Secretary Mnuchin. The comments made by Garlinghouse are, without doubt, aimed at reminding investors and regulators alike that XRP is different from Bitcoin and it does not support a parallel financial system. It is also a reminder that XRP is open to being fully regulated.
In his comments, Garlinghouse said that he had personally made his concerns about cryptocurrencies being painted with the same brush known to Secretary Mnuchin. He also stated that XRP and other similar cryptocurrencies work alongside traditional banking systems and not against them as is the case with Bitcoin.
— Brad Garlinghouse (@bgarlinghouse) July 15, 2019
The CEO also made reference to Facebook’s Libra, stating that due to what Libra sets out to achieve, close examination and regulation are necessary as the cryptocurrency essentially is designed as a substitute to the US dollar. Unlike Libra, XRP is just a tool to use for cross border payments and is already being made use of by companies such as MoneyGram. People who buy XRP can be able to perform cheaper and faster transactions across borders. Garlinghouse called for players in the crypto industry to work with regulators and within policies for the industry as a whole to be successful.
Garlinghouse also made a call to United States regulators saying that they should encourage innovation in the country. The crypto industry is fast growing worldwide and Ripple’s CEO believes that America needs to work towards integrating the industry and its work into the financial system. If regulators in the United States fail to do so, he says that they run the risk of allowing other countries such as Singapore and South Korea to take control of the sector which is becoming an important part of the global economy.
Trading cryptocurrencies in the United States is a matter that has come under increased scrutiny over the last few weeks. The comments made by Secretary Mnuchin and tweets by President Donal Trump reflect a hostile position towards cryptocurrency from the government of the United States.
The crypto industry will need to put in some significant work to prove to regulators in the United States that digital assets are not an avenue to facilitate illegal activity but rather a solution to some of the challenges faced by the financial sector. Until the view if cryptocurrencies shifts from them being “highly volatile, based on thin air and being used to facilitate unlawful behavior” as President Trump said, the mainstream adoption and regulation of cryptocurrencies will be a difficult task to achieve.