Posted 6 months ago | by Catoshi Nakamoto
As we are anxiously awaiting the results from the SEC’s trial against Ripple Labs, big moves are being made behind the scenes for the future of XRP. The seas have been choppy for the XRP army for a while now, but we have weathered the storm, and soon it will be our turn to make it rain.Read More
Let’s get it.
Welcome to BitBoy Crypto. Home of the Bitsquad, the largest crypto community in all of the interwebs. My name is Ben. Every day on this channel I show YOU how to MAKE MONEY in Crypto. If you like money and crypto then make sure to hit that subscribe button. If you wanna go deeper into crypto, make sure to check out bitlabacademy.com.. In this video we’re going to cover some of the most recent updates in the world of XRP.
A lot of people seem to think that development in the XRP ecosystem has been put on hold as the battle with regulators in the US wraps up, but nothing could be further from the truth.
Ripple has been hard at work making deals and setting up partnerships around the world, and things have really started to heat up recently. Ripple’s On-Demand Liquidity service, or ODL, which we’ve discussed on the show many times, is silently being adopted worldwide. ODL allows banks and other financial institutions to settle cross-border payments almost instantly, as opposed to the traditional methods which could take days or even weeks. As the court case has progressed, Ripple has continued to announce new partnerships in new parts of the world. We have previously seen financial institutions in Japan, Mongolia, Malaysia and the Philippines promise to adopt ODL services. Now, Ripple has announced a deal with Bank Alfalah, which will open the door for cross-border payments in Bahrain, Oman, Kuwait, Qatar, Singapore, and Pakistan.
These deals have contributed to the unprecedented traction that ODL has seen this year.
ODL is now available in over 20 countries and activity on RippleNet has more than doubled since last year, with ODL transactions going up 130% quarter over quarter. According to data recently published by Ripple, ODL transactions in the recent quarter accounted for 25% of total dollar volume across the entire network. Thanks to ODL, volume has grown by more than 25x since this time last year.
Most of the partnerships that we have seen in the past year have been overseas because of the uncertain regulatory environment in the US, but Ripple’s most recent announcement would pertain to American investors, which is under the SEC’s jurisdiction. This could be a sign that they feel confident enough in their case to start serving customers in the US again.
The new product is called “Ripple Liquidity Hub,” and it will allow businesses to assist their customers in buying a variety of different crypto assets including BTC, ETH, LTC, ETC, BCH and XRP. Ripple’s first partner will be a service called “Coinme,” which recently began working with Walmart to allow crypto purchases at some of their CoinStar machines.
According to CNBC, Ripple will be tapping into the existing ODL infrastructure for this new Liquidity Hub service. Representatives with Ripple have also said that they plan on offering this service to other customers in the US as well.
The fact that XRP is going to be available in Wal-Mart stores across the United States says a lot about how the current case against the SEC is going. If regulators were truly going to shut Ripple down, they would probably not be out there making deals to provide XRP in Wal-Mart.
In a press release issued on the Ripple website this week, a policy outline was put forward suggesting a better way for regulators to approach crypto, not just XRP, but the industry as a whole. In the statement, Ripple said that US regulators should step back and allow innovation to flourish in the blockchain industry. They also suggested that regulators should have honest good-faith dialogues with those of us in the industry so we can develop a realistic regulatory framework together.
The statement also railed against the SECs current strategy of “regulation-by-enforcement” and called for true regulatory clarity for crypto assets. To start, an amnesty program like the “Safe Harbor” law that was previously proposed by SEC Commissioner Hester Peirce, would allow developers in the US to innovate without needing to worry about ending up in court. There were numerous other legislative efforts that were supported in the statement, including the Security Clarity Act and the Digital Commodity Exchange Act. The specifics here are complex, but both measures would add more nuance to the legal code so crypto projects were not entirely judged by standards like the Howey Test that are almost a hundred years old. The Eliminate Barriers to Innovation Act also got some support in Ripple’s statement.
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When it comes to the question of who should have authority over the industry, Ripple thinks that the Commodity Futures Trading Commission (CTFC) is the regulatory body in the US that has jurisdiction over crypto. This is the agency that has been battling back and forth with the SEC about who gets to call the shots. The CTFC would probably be much easier for us to deal with than the SEC and it would also be a more accurate placement. Crypto is an entirely new asset class, but most of these assets are much closer to commodities than securities. Most of the positive legislation that we have seen around crypto has come from the CFTC and most of the negative enforcement action that we’ve seen has come from the SEC. However, it is important to remember that a lot of the help we’ve had from the CFTC was thanks to Chris Giancarlo, who is such a believer in the industry that he came to be known as “crypto dad.” He is no longer with the SEC, he’s now working in the blockchain industry instead, so we can’t be sure that the CFTC will always be as friendly as it was under his watch. Still, the CFTC would be a much better sheriff than Dirty Gary and the SEC.
Comment below with your top picks for the head of the SEC. And no it can’t be me. I’m too busy trying to save the Falcons.
An even better idea would be to form an entirely new agency and fill it with people from the industry who actually know what they’re talking about. Since this is actually a good idea the chances are slim that the government would ever consider it. It doesn’t hurt to ask though.
If we can get some kind of public ruling that isn’t settled privately behind closed doors, a legal precedent might actually be set, but the SEC is probably doing everything they can to prevent that from happening because they like regulation by enforcement, it basically gives them the power to go after any project they want. Ripple seems to be pushing back much harder than other crypto companies have when they found themselves in trouble with regulators though. They are on the front lines of a battle that will affect this entire industry. Ripple may not have been the hero some of us wanted, but it could end up being the hero we needed.
But that’s all I got, be blessed, Bitboy out.