Ripple CEO Brad Garlinghouse says the blockchain-based payments company is seeing more expansive growth outside of the US because of the country’s restrictive stance on crypto. In a new interview on Bloomberg Daybreak: Asia, Garlinghouse says the majority of Ripple’s open positions will be filled by people in countries more accommodative to the crypto industry. […]
The post Brad Garlinghouse Says Ripple Will Get 80% of New Hires From Outside the United States appeared first on The Daily Hodl.
Brad Garlinghouse said Singapore, the U.K., the UAE and Switzerland are jurisdictions with “smart” crypto policies he thinks the U.S. should adopt.
The United States is one of — if not the worst — place to launch a cryptocurrency startup in the world right now, according to Ripple CEO Brad Garlinghouse whose firm is in a legal battle with the U.S. securities regulator.
“The only country I would not encourage you to start a company right now is in the U.S.,” Garlinghouse said on a Sept. 12 panel at Token 2049 in Singapore.
The Ripple boss wants the U.S. to take note from the likes of Singapore, the United Kingdom, the United Arab Emirates and Switzerland by enacting policies that encourage crypto innovation while protecting consumers.
Garlinghouse pointed the blame at the Securities and Exchange Commission claiming its engaging in a political war with the industry with its lawsuits.
That lawsuit strategy isn’t working, said Garlinghouse, and claimed Ripple and Grayscale’s court wins over the SEC may suggest the court’s mood is turning in the industry’s favor.
“I think you're seeing the momentum shift. I think that it used to be that a lot of judges were like: ‘Well the SEC is always right,’ and they weren't fighting that [but] I think you're starting to see the pattern change.”
While the outcomes in Ripple and Grayscale aren’t legally binding, Garlinghouse said the results provide more clarity to crypto exchanges and custody providers operating in the U.S. — at least for now.
OKX president Hong Fang acknowledged the politics at play but stressed for crypto firms to focus on what they can control.
“We can only control what we can control, which is to build the right product and to focus on the technology and to support responsible regulation.”
Despite the U.S. being a big market for Ripple, Garlinghouse said it’s expanding services to countries he claims are more progressive and better understand the potential benefits of blockchain technology.
During the panel, Fang said he thinks investors may not be ready for custody solutions built around a prospective spot Bitcoin (BTC) exchange-traded fund because much of the new blockchain-based infrastructure hasn’t been battle tested by the masses.
“I think there's a huge implication on custody [...] The question I have on my mind is whether our industry is actually ready for it” he said.
Related: Crypto community jubilant over Grayscale decision, but uncertainty remains
Fang acknowledged a spot Bitcoin ETF will lead to more institutional inflows but isn’t convinced that investors can now stomach Bitcoin’s volatility and second guessed the readiness of continuing to build more applications on top of Bitcoin.
“We are actually creating something that is new, that we can build on top of, a new monetary system that hasn't come to fruition yet,” Fang said. “So I don't know whether we're ready for that yet from an industry infrastructure perspective.”
Magazine: Deposit risk: What do crypto exchanges really do with your money?
Ripple Labs built its XRP token on a centralized system. But with legal action against Ripple coming to a close, it could move toward a more open platform.
In July, a United States judge ruled that Ripple Labs’ XRP (XRP) token was not a security when sold to the public on secondary markets. While the Securities and Exchange Commission will contest the decision, the broader cryptocurrency community has embraced it, as crypto trades on exchanges might sidestep the securities transaction label.
Despite the ruling, the crypto market continues to suffer from broader uncertainty. Ripple has long been entrenched in this battle, but this legal victory might serve as a partial emancipation, allowing the company to relight its former flame. This case presents an opportune moment for the company to chart a new course, turning the page from an old chapter to ignite a new era.
Ripple was designed to replace the traditional SWIFT system of cross-border payments. And there were valid reasons to do so, as anyone who has experienced the frustration of paying $45 for an international wire transfer that took four days to reach its intended recipient can attest. Offering an accelerated process, untethered by weekend or holiday delays and free of the exorbitant and unpredictable fees associated with SWIFT transfers, Ripple aimed to build a crypto product closely mirroring the legacy financial ecosystem — a system primed for everyday transactions.
Related: Ripple verdict could spark a new bull market — or more malaise
This aim defined its product, leading it to undertake the formidable task of constructing an entire technology stack from scratch. However, this proved to be a herculean task. Beyond the technological challenges, there were various processes and unexpected areas of friction, particularly in operating across numerous jurisdictions. The endeavor likely surpassed Ripple’s initial estimations, forcing it to make adjustments and sacrifices in order to reach its goals.
One of the main compromises Ripple took was to create a more centralized structure, which was fundamentally different from other crypto projects. This decision proved to be a double-edged sword. While this configuration initially facilitated swift and economical transactions, it inadvertently repelled a broader Web3 developer community from participation. This strategic choice curtailed individual engagement, fostering an environment that felt less than inviting.
#XRPCommunity #SECGov v. #Ripple #XRP Counsel for Ripple has informed Judge Torres that Ripple is available for trial anytime in the second quarter of 2024. pic.twitter.com/JoZZlxcJSr
— James K. Filan (@FilanLaw) August 23, 2023
The centralized structure also naturally led to the creation of a closed system, which inherently prevented Ripple from building an indispensable, application-layer foundation. While a closed solution allows Ripple to capture all of its generated value for itself, an open platform creates a system where, as Bill Gates famously said, “the economic value of everybody that uses it exceeds the value of the company that creates it.”
Creating a true ecosystem, which is the alternative, more preferred way that leads to layer-1 blockchain networks, allows a community to flourish, with both individuals and entities deeply vested in the triumph of the protocol. Community members and followers act as a beacon, continually drawing in more participants, ultimately creating a self-fulfilling prophecy for a protocol mission and growth. And while Ripple may now share the generated value of its ecosystem with its community members, it stands to gain greater economic value by obtaining a portion of a substantially larger pie.
Related: It’s time for the SEC to settle with Coinbase and Ripple
Predicting whether such a community would significantly alter the course or dynamics of Ripple’s legal battle remains uncertain. Nevertheless, it’s evident that there are clear advantages on both the business and product fronts when it comes to operating a layer-1 blockchain, a fact substantiated by numerous successful projects.
And it’s not too late in the game to redirect the course, as far as Ripple is concerned. Numerous projects within the Web3 domain embarked on their journeys with greater centralization, gradually morphing into decentralized autonomous organizations that relinquished control to their communities. Notably, Cosmos pioneered an innovative framework, provisioning developers with the groundwork for an interconnected blockchain network that still interfaces with other Cosmos-based platforms. Ethereum today thrives with a burgeoning layer-2 ecosystem — an unforeseen augmentation facilitating swift fund transfers, experimentation, novel app development and rigorous testing.
When startups seek alignment with convention or conservative institutions, regulatory ambiguity proves a deterrent. Presently, Ripple enjoys a modicum of certainty, which is an asset when approaching partnerships with those traditional entities.
With any luck, Ripple’s fire will burn once more, as it provided one of the first approaches to tackling real-world financial problems. What’s more, the movement toward further decentralization has been relatively universal across the entire crypto ecosystem. In any case, the outcome for Ripple will come down to its technology and the ecosystem, which it now has considerably more control over.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Ripple Labs’ chief legal counsel says that the U.S. Securities and Exchange Commission (SEC) is being hypocritical by arguing for an appeal in last month’s landmark XRP court ruling. In a new thread, attorney Stuart Alderoty says that the regulatory agency’s latest filing for an appeal to resolve “knotty legal problems” is hypocritical given that […]
The post Ripple’s Top Lawyer Calls SEC’s Latest Argument for Appeal in Landmark XRP Ruling a ‘Hypocritical Pivot’ appeared first on The Daily Hodl.
He pointed out that Gensler had requested an urgent appeal while simultaneously asserting that crypto regulations and rules were clear and must be adhered to by the industry.
Stuart Alderoty, Ripple's Chief Legal Officer and General Counsel in the SEC v. Ripple Labs case, has characterized the United States Securities and Exchange Commission's (SEC) latest submission as a "contradictory shift" and contends that it holds little sway.
Following the recent filing by the U.S. SEC to reinforce its interlocutory appeal, Stuart Alderoty, Chief Legal Officer at Ripple, commented on X, referring to the submission as another instance of a "hypocritical pivot." Alderoty highlighted what he sees as Chairman Gary Gensler's inconsistency, manipulative actions and appetite for expanded regulation.
He pointed out that Gensler had requested an urgent appeal while simultaneously asserting that crypto regulations and rules were clear and must be adhered to by the industry.
“Another SEC filing, another hypocritical pivot… After years of its chairman saying the ‘rules are clear and must be obeyed,’ the SEC now cries that an appeal is urgently needed to resolve these knotty legal problems.”
Attorney James K. Filan took a dig at the SEC, ridiculing their newfound concern for preserving judicial resources. He pointed out the SEC's previous attempt to pause all proceedings in the case.
The SEC’s argument that Judge Torres should stay the proceedings because the SEC is all of a sudden concerned about conserving judicial resources is laughable.
— James K. Filan (@FilanLaw) September 8, 2023
Renowned pro-XRP attorney John E. Deaton remarked that those not well-versed in the U.S. SEC v. Ripple Labs case might find Ripple CLO Alderoty's response to the SEC to be harsh. However, for those familiar with the case, Alderoty's characterization of the SEC as "hypocritical" is simply a reflection of the federal judge presiding over the matter.
Related: Rep. Tom Emmer sponsors amendment to limit SEC’s crypto oversight
In the Grayscale lawsuit, federal judges have criticized the US SEC's assertions as "arbitrary and capricious." Meanwhile, in the Ripple XRP case, Judge Netburn employed the term "hypocrisy" to characterize the SEC's contradictory stances. Additionally, Ripple's Executive Chairman, Chris Larsen, anticipates that the SEC's approach of enforcing regulations through legal actions may come to a conclusion in the near future.
Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?
Stellar’s pre-announcements may have caused traders to create multiple scenarios for potential XLM developments, but their impact on the XLM price could be short-lived.
The Stellar token experienced a notable 11.5% increase in value between Sept. 2 and Sept. 8, a novelty given that Bitcoin and most altcoins are down for the week. The surge came after Stellar (XLM) tested the $0.113 support level, which marked its lowest point in the past eight weeks. The price upswing followed a preliminary announcement made by the Stellar organization on social media.
While the announcement was somewhat cryptic, it hinted at something significant occurring on Sept. 12, with phrases like “something cool is dropping” and "change” on the horizon.
More recently, on Sept. 7, Stellar further heightened expectations by teasing a potential partnership. However, similar to the earlier announcement, no specific details were provided, with only words like “brand” and "real world” used, suggesting a possible rebranding and a shift toward real-world assets (RWA) like stocks, bonds and real estate.
Caroline Pham, one of the five commissioners of the Commodity Futures Trading Commission, emphasized on July 17 that recent court decisions regarding the classification of cryptocurrency assets would ultimately lead to regulatory clarity. Pham also stressed the significance of RWAs and highlighted the opportunities for modernizing financial markets through the tokenization of money market funds on blockchain technology.
Unfounded rumors circulated regarding Elon Musk’s X (formerly Twitter) potentially integrating XLM after the social network obtained a currency transmitter license from regulators on Aug. 28. It’s worth noting that X had previously received approvals from six other states prior to this latest announcement.
Elon Musk will build X into the worlds most valuable financial institution
— MASON VERSLUIS (@MasonVersluis) August 31, 2023
He is acquiring all the necessary licenses to integrate CRYPTO into Twitter/X
My hope is that $ETH, $XRP or $HBAR or even $XLM is one day involved pic.twitter.com/YjRTxF0pMz
Moreover, it’s important to note that even if X decides to integrate multiple cryptocurrencies, XLM’s current market capitalization of $3.4 billion falls short of making it a top 20 contender. A similar analysis, using Messari Crypto’s "real volume” ranking, positions XLM as 20th in terms of trading volume, trailing behind competitors such as Bitcoin Cash (BCH), Sui (SUI), Litecoin (LTC) and Ripple’s XRP (XRP).
In mid-August, the Stellar Development Foundation (SDF) leveraged its cash treasury to become a minority investor in payments provider MoneyGram International. SDF, the entity behind Stellar’s native token development, had previously established a commercial partnership with MoneyGram in 2021.
According to Denelle Dixon, SDF’s CEO and executive director, this investment would contribute to MoneyGram by expanding its digital business and exploring blockchain technology.
Stellar's website states:
“Your application can now seamlessly connect to MoneyGram’s retail network through a single integration, allowing users to deposit or withdraw cash from their digital wallets via Stellar USDC without requiring a bank account."
The website adds the integration’s various benefits, including the ability for users to “top up their digital wallet balance with cash," conduct “near-instant, low-cost cash transactions” using “dollar digital currencies” and complete Know Your Customer procedures “through MoneyGram’s user-friendly interface."
Related: Ripple acquires Fortress Trust, expands license portfolio in the US
Stellar is preparing to deploy a smart contract platform called Soroban on its mainnet. The company launched a $100 million adoption fund in October 2022 to encourage developer activity for applications on its Futurenet testnet.
Although this week’s price action does raise eyebrows, aside from the unfounded speculation, all signs indicate that Stellar is positioning itself to compete in the $37.8 billion decentralized application market. The current market leader, Ethereum, holds a dominant 56.6% market share, according to DefiLlama, despite its average transaction fee of $4.
It’s undeniable that RWAs in decentralized finance hold significant potential, as exemplified by MakerDAO’s holdings of U.S. Treasurys, which have boosted the protocol’s revenues and effectively mitigated the increased exposure of its Dai (DAI) stablecoin to USD Coin (USDC).
XLM investors will continue to eagerly await the Sept.12 announcement, but until concrete evidence emerges regarding what this payment network might unlock, the likelihood of achieving further gains of 12% or more to surpass the $0.14 price last seen on Aug. 10 remains slim.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Fortress holds a Nevada Trust license for asset custody. Ripple holds more than 30 licenses across the United States.
Financial technology firm Ripple is expanding its portfolio of regulatory licenses in the United States with the acquisition of Fortress Trust, according to an announcement on Sept. 8.
Fortress Trust provides regulatory and technology infrastructure for blockchain organizations. The company holds a Nevada Trust license that allows it to custody financial assets. The acquisition is in addition to the more than 30 licenses Ripple holds across the country as a money transmitter, along with a BitLicense in New York, required digital currency businesses operating in the state.
“Licenses are a powerful enabler to build and deliver best-in-class customer experiences for enterprises,” said Monica Long, president at Ripple. According to Ripple’s announcement, the technology and licensing held by Fortress Trust complements its business and product roadmap
Ripple first invested in the company in 2022 via a seed round. The recent transaction amounts and other financial terms were not revealed.
Today, we are announcing intent to acquire Fortress Trust, part of the @Fortress_io suite of companies. Fortress Trust’s financial and regulatory infrastructure complements and expands Ripple’s comprehensive portfolio of blockchain solutions for finance. https://t.co/LIl3cPEur2
— Ripple (@Ripple) September 8, 2023
“As an early investor in Fortress Blockchain Technologies, we’ve had a chance to get to know the team, its vision and technology. Since their launch in 2021, they’ve built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers,” said Brad Garlinghouse, CEO of Ripple.
Ripple has been accelerating deals amid the bear market. In May, the company announced the acquisition of Metaco, a Swiss digital asset custodian and tokenization provider, for $250 million. A Ripple executive forecast in January that 2023 would see a wave of acquisitions within the crypto space, helping companies fill gaps in capabilities
Ripple plans to invest in Fortress’ parent company, Fortress Blockchain Technologies, and its affiliated firm FortressPay services, the announcement reveals. Ripple claims to be present in over 55 countries, offering payout services through blockchain technology.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
Ripple co-founder Chris Larsen is weighing in on how the U.S. Securities and Exchange Commission (SEC) is handling the crypto space. In a new interview with Bloomberg Technology, Larsen says the SEC’s recent legal defeats confirm the United States is taking the wrong approach to crypto regulation. Most recently, a federal judge ruled that the […]
The post Ripple Co-Founder Blasts ‘Unelected, Power-Hungry and Misplaced’ SEC Bureaucrats, Says Clear Crypto Rules Needed appeared first on The Daily Hodl.
David Schwartz believes the U.S. legal system is looking more skeptically at SEC cases against various cryptocurrency industry participants.
A court ruling that cleared Ripple's XRP token of being considered a security offering might signal a turn in the tide against regulatory scrutiny of the cryptocurrency ecosystem in the United States and current lawsuits involving the likes of Coinbase and Binance.US and pending ETF applications.
Speaking exclusively to Cointelegraph during the company’s annual Apex developer conference being hosted in Amsterdam, Netherlands, Ripple CTO David Schwartz weighed in on the potential precedent set by a federal judge ruling that XRP was not a security when sold programmatically on cryptocurrency exchanges.
Ripple has been entwined in a protracted legal battle with the U.S. Securities and Exchange Commission since 2020, but its recent part victory may have positive implications for a number of crypto-related lawsuits instituted by the SEC.
Schwartz admitted that the SEC case had cost Ripple business deals that had been on the table, but stressed that the bigger loss was felt in the community as ecosystem support felt stifled by the delisting of XRP across a number of prominent exchanges. This has since changed with the latest ruling in favour of XRP:
“The ruling that we've had so far was sufficient to allow exchanges to relist XRP, and it was big, I think, for the entire ecosystem.”
Schwartz said that the tide was perhaps turning in the United States, where crypto ecosystem participants began considering relocating to different jurisdictions in order to continue operating away from a cloud of regulatory uncertainty:
“I feel bad that I have to tell people that the United States is probably not where they want to be, but the tide is turning. You know, the ruling in our suit that basically said that XRP is not inherently a security, that’s huge.”
Schwartz said that the wider industry was now feeling the scrutiny that Ripple had first endured from the SEC in 2020, with the likes of major cryptocurrency blockchains like Solana, Cardano and Polygon seeing their respective tokens labeled alongside others as unregistered securities in the SEC’s lawsuits against Coinbase earlier in 2023.
“They (SEC) can apply these very same arguments to whatever cryptocurrency you like or whatever business you like. Fortunately, people understand that argument a lot better now that they've seen the SEC go after Coinbase and others and some of the things they've done.”
The Ripple CTO also believes that U.S. judges are looking more skeptically at cases brought forward by the SEC and that companies with the resources are taking a stand that will benefit the wider industry.
“They're starting to get huge pushback from Coinbase and pushback on the ETFs. Hopefully that will prompt some changes at the legislature level, hopefully positive ones.”
Ripple's Apex conference brings together developers building within the XRP Ledger blockchain ecosystem. The blockchain forms the backbone of RippleNet, the platform that manages Ripple's XRP payments system.
Magazine: NFT collapse and monster egos feature in new Murakami exhibition
Palau's USD-backed stablecoin build on XRP Ledger will be frozen on Sept. 15 as the government will be collecting feedback from users to shape the way ahead.
Palau, a country in the western Pacific Ocean, is wrapping up its U.S. dollar stablecoin project after launching the pilot in August.
Jay Hunter, Palau Ministry of Finance member and head of digital residency program, took to X (formerly Twitter) to announce that the government will cease the distribution of the Palau Stablecoin (PSC) on Sept. 8.
Following the distribution halt, the Palau Stablecoin will also be frozen after Sept. 15, becoming unavailable for spending by users, Hunter said, noting:
“After Sept. 15 you will no longer be able to spend the PSC. This will give us time to process retailer redemptions before the pilot’s official termination at the end of the month.”
In the announcement, Hunter didn’t provide exact reasons for freezing the stablecoin, only noting that the government will send a survey to pilot participants next week. The move came weeks after the government launched the PSC in late July.
“If we are authorized to move forward with the next phase of the stablecoin program, our collective lessons learned will shape the way ahead,” the official said. He added that users' feedback would be critical to developing the final report to the Palau Congress and the president.
Related: Visa taps into Solana to widen USDC payment capability
The news comes shortly after Hunter posted a study devoted to stablecoin technology and related security considerations from the National Institute of Standards and Technology. Issued in September, the study evaluated some of the necessary properties of security and stability and identified “18 potential issues in stablecoin implementations.”
Stablecoins are a type of cryptocurrency that aim to maintain a stable price relative to a specified asset (usually a fiat currency).
— Jay Hunter Anson (@JHX_1138) September 5, 2023
Much has been written about how to use stablecoins and about the economic implications of doing so, specifically price variability. However,… pic.twitter.com/Hek7tUqXZR
Nicknamed the Kluk, the Palau Stablecoin is designed to reduce transaction costs and enhance the speed of transfers for citizens, merchants and the government of Palau. The stablecoin was built on Ripple’s XRP Ledger, a platform focused on the issuance of central bank digital currencies (CBDC).
The XRP ledger CBDC platform also serves as the foundation for similar pilot projects in countries like Hong Kong, Bhutan, Colombia and Montenegro.
Magazine: Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in
