The price of Ripple may not have moved too far in recent days, but the buzz around it does seem to be building. Following the news that the U.S. Securities and Exchange Commission (SEC) had rejected the Winklevoss-backed Bitcoin exchange-traded fund, those with an eye on XRP have taken note. Unlike other, more traditional cryptocurrencies that have balked at regulation in recent years, Ripple is actively seeking it according to its chief marketing strategist.
“One person’s regulation is another person’s protection. I believe it’s really important for investors to be protected…We’ve seen what happens when there aren’t investor protections. We’ve seen investors lose so much money, and we’ve seen it in the world of crypto. We’ve seen some real bad actors involved, so we’re thrilled that regulators are getting involved,” Ripple’s Cory Johnson recently told Fox Business.
Ripple’s Lack of Regulatory Resistance Makes Is Vital for All Cryptos
At this stage, the Ripple’s XRP token hasn’t done what the Winklevoss Bitcoin ETF (Bats ETF) couldn’t do and achieved SEC approval. However, the price has remained steady as other regulatory bodies have shown support for XRP and the Ripple payment system. Back in April, the Saudi Arabian Monetary Authority (SAMA) confirmed its partnership with Ripple, while a consortium of 61 Japanese banks have also backed the technology. In tandem with backing outside of the US, Ripple has been given one of the new BitLicenses by the New York State Department of Financial Services (NYSDFS). Given to digital currency companies operating in the state of New York, the license is part of an emerging set of recognized regulations for cryptocurrencies.
As a technology, Ripple has often been criticized by industry purists. The debate over whether XRP is a true cryptocurrency rages on often refers back Ripple’s relationship with major businesses. Although mainstream adoption is something Bitcoin, Ethereum and its peers are striving for, there are some that feel Ripple’s relationships with banks goes against the ethos of cryptocurrencies. Indeed, for those involved in the early days of Bitcoin, the aim of the project was to spark a movement away from traditional banks and towards a decentralized digital monetary system. In contrast, Ripple has what many consider a hybrid approach.
High Profile Partnerships Continue to Buoy XRP Price
The xRapid trials were recently responsible for a spike in the price of Ripple and showed that its system is highly effective when it comes to cross-border transactions. However, the fact this technology will essentially be used by a central authority (i.e. banks), has led many to question its place in the industry. However, for all the debates between purists and Ripple supporters, it’s clear that those behind the project aren’t scared of regulation. In fact, as Johnson suggested in his interview with Fox News, regulation is not only good for Ripple but the industry as a whole. As problems such as the Ethereum Twitter scandal persist, developers across the industry are searching for ways to protect their products and consumers.
While the rise of crypto technology has been impressive, the evolution of the blockchain has far outstripped the development of the industry’s security provisions. Although things are changing for the better, regulation may be the only way to truly enforce better standards across all aspects of the crypto world. For Ripple, cooperating with established organizations such as SEC is now a core component of its business model. This, in turn, has helped it become one of the standout cryptos for investors and major businesses. Indeed, thanks to companies like MoneyGram and Walmart embracing Ripple, the technology’s future looks more secure than many of its peers. For long-term investors, the recent talk about regulation has been seen as another reason to be bullish. Even though the short-term price of XRP remains unstable, incremental gains or losses shouldn’t detract from the industry’s ultimate goal: mainstream adoption.
Without the backing of big businesses, governments and regulators, cryptos will remain a niche for tech geeks. Although we may not ever go back to a time when 10,000 BTC was worth the same as a pizza, a lack of structure and regulation will stunt the market’s growth and, potentially, cause its demise. For the team at Ripple, this can be avoided, so long as developers don’t shun regulation. That, in essence, was the message behind Johnson’s recent comments and, for many experts, the reason why XRP remains the token to invest in right now.