XRP Being Accessed Further, Gets Pass from Law Maker

When it comes to the matter of digital assets and cryptocurrencies, there is not much clarity given by regulatory agencies to crypto businesses.

Many businesses related in anyway to cryptocurrency have complained commonly about this problem of lack of regulatory clarity. This problem is especially true for crypto businesses that are located in USA.

So many crypto businesses that are located in the United States have been forced to relocate their businesses or even close down operations completely. The other remaining ones have become targets of regulatory agencies. 

This lack of regulatory clarity can be seen played out in the Ripple situation where Ripple Labs a cryptocurrency firm located in San Francisco was hit with a lawsuit from the SEC in the United States in December 2020.

This matter has caused a lot of tension and there have been a lot of hot debates about the matter. One can also recall that the execs of Ripple Labs had once admitted to the possibility of relocating their business abroad.

Many cryptocurrency enthusiasts, defendants and the crypto community in the USA at large have come out to criticize the USA’s regulatory agencies’ lack of clarity on crypto dealings.

Now, lawmakers in the USA have also started joining to criticise this problem. A lawmaker for Ohio, Warren Davidson has come out to speak against the problem.

The lawmaker made a statement about the regulatory issues in an appearance at Bloomberg. He said that, he is glad that the president of the USA is now attending to the matter and meeting with the regulators in the country. 

The financial regulations in the USA have been very slow to adapt to the rapidly changing financial world and is not keeping up with all the recent Fintech innovations fast enough.

Lawmaker Warren also cited an example of XRP in his statement saying that the cryptocurrency is indeed very useful as a payment system but the way the regulatory agencies were handling the regulation of it made it look like security. 

Mr Warren Davidson also briefly mentioned the Howey test saying that it will allow the situation to be handled with greater clarity and room for innovation.

Recall that, Warren Davidson has been quite involved in the cryptocurrency space of late. For instance, the congressman attended a Bitcoin 2021 conference some weeks ago.

And in an event before that, he has commented on Bitcoin saying it is a great store of value. He has also pushed forward a bill called Token Taxonomy Act of 2021 in an effort to create more regulatory clarity for the crypto space.