Posted 1 year ago | by Ben Armstrong
Coinbase and Ripple Unveil New Plan to Advance US Cryptocurrency Adoption
Coinbase's Rachel Nelson and Ripple's Breanne Madigan are co-chairs of the Market Integrity Working Group. They are leading a push for smart regulations and transparency in the United States crypto industry.
There has been an increasing divide between nation of how cryptos should be regulated. Some nations, like China, have banned cryptos outright. Others, like India, have created de-facto bans on the crypto industry. The US has a more nuanced approach to the crypto sector, which has created uncertainty for crypto businesses.
In order for a company to investment money, there need to be firm regulations in place. The US government has fallen behind in this area, and has left many of the regulatory agencies to deal with crypto regulations on their own.
Market Integrity must Improve
The Market Integrity Working Group’s co-chairs are making an effort to bring greater transparency and smart regulations in the US by pushing regulators to find ways to advance the cryptocurrency industry.
The group expects that regulatory clarity would help drive adoption in the country. The US has been moving significantly slower than many other parts of the world in the adoption of cryptocurrency and blockchain technology.
In an official company statement, Rachel Nelson, Coinbase senior director and associate general counsel, and Breanne Madigan, Ripple’s head of global institutional markets wrote:
“To improve market integrity and provide consumers the confidence they deserve, Congress may need to enact legislation to support the orderly and secure functioning of crypto markets.”
“Such legislation could expand the Commodity Futures Trading Commission’s (CFTC) authority to include the regulation and oversight of digital commodity exchange markets.”
The Need for Regulations
The Working Group is a new organization, which officially launched on Jan. 23 2020. It thinks that state-specific regulations are one of the the main issues for crypto businesses in the US.
From the Working Group:
“Consumers and cryptocurrency exchanges deserve a clear regulatory framework, the establishment of which would ultimately enhance market integrity and drive consumer adoption of cryptocurrencies.”
There is no doubt that cryptocurrencies will play an increasing role in global commerce. The nations that allow new technology to grow will have a first-mover advantage, while nations that impede the development of crypto infrastructure will be left behind.
It is unlikely that the world needs dozens of crypto development hubs. As it stands today, the US is falling behind, and it may be too late to convince the crypto industry that the US government has what it takes to created a workable regulatory framework for the crypto and blockchain industry.