When asked why hasn’t XRP gained the kind of traction that so many people thought it would a couple of years ago.  What has held it back?

Chris Larsen, Ripple co-founder and Executive Chairman stated, well it is frankly regulatory clarity. He pointed to how they have lot of regulatory clarity in key parts of the world in Japan, in Singapore, UK, Switzerland, and UAE who have deemed XRP a currency.

Larsen stated that it is good to have regulatory clarity, because you get utilized in very effective ways in helping humans. He regrets that in the US 10 years in that they still do not have that regulatory clarity. And, that he states is holding back XRP in the US market for crypto. He stated that it was unfortunate.

When asked why has XRP been singled out by regulators? Larsen acknowledged that it was a good question and stated it is perplexing in many ways. XRP was declared a currency by Obama’s Treasury in 2015. And, out there in the wild now for almost 9 years hundreds of billions of dollars have traded.  So, it has utility. So, we think that is a perplexing move that happened literally on the last days of the Trump administration in the SEC for example.

However, Larsen stated that they are hopeful that they can get the clarity in the US and on how that will allow the US to be rightfully the number one when it comes to Fintech, Crypto just like it is with every other part of the internet.

Regarding the SEC suit, when asked that it is over issues that is already settled with the Department of Justice that causes some confusions about where the regulator is on these issues and when asked for clarity on how this space will be regulated? Are we there yet?

In response Larsen stated that they are not there in the US as of yet with regulatory clarity. He stated this is not a Ripple issue, it is across Fintech and crypto. The problem with the US is a complexity. He pointed to how they find that there are 8 Federal regulators and on how they are able to see the insight of the matter to be fantastic. 

The FINCEN with the treasury have been super innovative and forward thinking on this, but we haven’t quite got there yet with the securities regulators.  I think we will get there as an industry, but that is going to be essential if the US is going to stay on top, because it is too easy now for innovators to move to places like Singapore, which is so great to work with the regulators there or the UK for example. Fantastic relationship with the regulators that innovators have. So, we have got to get our act together otherwise we are going to lose this race to China, which is racing ahead.

When asked if they were optimistic about Gary Gensler? Larsen stated that his administration is going to be a lot about climate focused. So may be focusing on Green crypto – hopeful, but we will have to see.