Progress has often been met with resistance, even when it comes to technology. The same can be said about blockchain and cryptos, with the SEC v. Ripple case a perfect illustration for some. The defendants in this lawsuit are among those who believe that the United States’ management of this asset class is pulling it back.
Stuart Alderoty, General Counsel for Ripple, is the latest to share his sentiments on the same. In a recent opinion piece, he addressed how government-funded resistance can prove harmful to crypto’s growth in the U.S.
Reiterating the old argument that the SEC’s lawsuit is “unfounded” and “misguided,” Alderoty claimed that “the case is a haphazard attempt to regulate the cryptocurrency and blockchain industry as a whole.”
He went on to add,
“Developing a regulatory framework for cryptocurrencies and digital assets will not be a simple exercise. But threatening innovators with suits at every turn will have tragic consequences for the benefits and economic growth that digital assets and blockchains have the potential to unlock.”
According to the General Counsel, Congress and regulators must work together to provide regulatory clarity to the crypto-industry. He also believes that 2023 could see a country other than the U.S lead the digital asset revolution for the first time.
Will the United States be left behind?
Many, including Alderoty, have argued in the affirmative, with some suggesting that China could soon take that mantle. These concerns have gathered more steam of late following the relocation of some American crypto-companies elsewhere. Interestingly, Ripple too has considered moving away from the USA, with London and Singapore among its options.
“As a proud American company, it is discouraging to see talent and businesses (and tax dollars) leave the U.S due to this uncertain and unwelcoming environment. Major industry players, such as FTX and Crypto.com are headquartered outside of the US, which is materially hurting the U.S’s leadership and innovative potential by causing a crypto brain drain.”
Worth pointing out, however, that despite the lawsuit, Ripple has performed well in 2021 with its on-demand liquidity. RippleNet ended the year with a 10 billion dollar run rate in terms of volume moving through it, as per Asheesh Birla, General Manager at RippleNet.
As of the end of 2021, ODL was available in 22 destination markets. Ergo, it is safe to say that RippleNet will grow, with or without support from the U.S.
Birla, while talking about ODL and Liquidity Hub, also shared that there are many requests for ODL to be available in more destinations. Right now, however, Ripple achieving global coverage of ODL is a goal for the long-term.
Hence, the question – Can the U.S afford to not be a part of this revolution?