Stanford paper points out Ripple’s strategic value to US policymakers

A Stanford paper highlights Ripple’s potential strategic value and criticizes U.S. lawmakers for regulatory delays that are hurting competitiveness. In a post on X, anonymous XRP community influencer Wrath of Kahneman (WOK) spotlighted a Stanford paper discussing the role of cryptocurrency in maintaining the dominance of the U.S. currency. The paper specifically mentions Ripple, highlighting its potential strategic value to U.S. policymakers. The discussion has sparked controversy over the U.S. government's approach to cryptocurrency regulation.

Ripple’s potential and regulatory hurdles
The Stanford paper highlights the need for the U.S. government to create a business-friendly environment for decentralized ledger technology (DLT) companies, especially those like Ripple. The paper praises Ripple as a private sector payments network that processes more than $1 billion in transactions per day and has extensive global coverage.

The paper states that the uncertain regulatory environment in the United States has hindered Ripple’s competitiveness, research progress, and growth potential. The paper suggests that U.S. lawmakers should recognize the strategic wisdom and value provided by Ripple and advocate for a clearer regulatory framework to support Ripple and similar companies. This regulatory clarity could enable businesses like these to expand globally while contributing to U.S. financial infrastructure.

Community reaction and political impact
Reacting to this, community members intensified the debate regarding the role of U.S. lawmakers in cryptocurrency regulation. Some expressed frustration, noting that the strategic value of companies like Ripple has been apparent for years. One commentator, Dan Thurman, highlighted the potential benefits of a dollar-backed stablecoin backed by the U.S. Treasury, which could drive demand for sovereign debt and create liquidity in bond markets. However, he also acknowledged the challenges posed by the growing interest in the BRICS alliance of more than 100 countries.

Wrath of Kahneman responded to questions about whether U.S. officials' actions were strategic or based on ignorance. He suggested that a combination of ignorance and financial interests might be at play, although he acknowledged that was his personal opinion and had no concrete evidence. Another commenter expressed skepticism that Congress might be uninformed about the benefits of blockchain technology, suggesting corruption might be a more plausible explanation.

Ripple's legal battle with the SEC
Amid the regulatory chaos, Ripple’s chief legal officer Stuart Aldrotti highlighted a development in the company’s ongoing legal battle with the United States Securities and Exchange Commission, The Crypto Basic reported on June 17. The SEC filed charges against Ripple on March 22 for violating federal securities laws, alleging that it conducted nearly $2 billion in unregistered sales of XRP to institutional investors.

However, Aldro called the request "ridiculous". The proposed penalties include a civil penalty of $876.3 million, disgorgement of the same amount, and prejudgment interest of $198.15 million, for a total of nearly $2 billion.

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