Yesterday, Ripple appointed former JP Morgan (JPM) Chief Regulatory Affairs Officer, Sandie O’Connor, to its board of administrators. There’s the continuing query of whether or not XRP is a safety. Mixed with Ripple’s current menace to maneuver its U.S. headquarters abroad as a result of lack of regulatory readability, O’Connor will present Ripple counsel on regulatory and governmental issues.
Working for JPM for over 30 years, O’Connor has been celebrated a number of instances as one of many Most Highly effective Girls in Banking and Finance in American Banker’s prime 25 lists. In her most up-to-date position, she established JPM’s regulatory technique, engaged with G-20 regulators, and served a number of governance committees. She presently serves as a Systemic Decision Advisory Committee Member of the Federal Deposits Insurance coverage Company (FDIC) and is on a Monetary Stability Activity Pressure.
“Her intensive community and in-depth understanding of markets, capital flows and banking will present precious and distinctive insights as new insurance policies and rules take form throughout the U.S.,” mentioned Ripple’s CEO Brad Garlinghouse. “The U.S. wants a single clear regulatory framework for crypto that ranges the enjoying discipline and helps American innovation and corporations.”
Is XRP a safety?
Different cryptocurrencies akin to Bitcoin and Ethereum have been deemed to not be securities as a result of they’re sufficiently decentralized. Three months in the past, the XRP Ledger Foundation was created to help the functioning of the ledger independently of Ripple. We’d speculate that one of many motivations is to reveal that Ripple doesn’t management XRP.
O’Connor’s appointment comes at a vital time as Ripple expresses frustration on the lack of regulatory certainty within the blockchain and cryptocurrency sector. On the October LA Blockchain Summit, Ripple’s Chairman and Co-Founder Chris Larsen threatened to re-locate Ripple’s U.S. headquarters to a extra blockchain-friendly jurisdiction. He cited the U.S.’s regulatory hostility and talked about monetary hubs akin to London, Switzerland, or Singapore as viable choices.
Larsen acknowledged that ICOs have been an actual drawback within the early days however believes the world has moved on. “Within the U.S., all issues blockchain and digital forex began and ended with the SEC (Securities & Trade Fee),” he mentioned. “We are actually on this tech chilly warfare with China and as an alternative of pivoting to encourage U.S. innovation to maintain up, they’ve carried out the other. They gave Bitcoin and Etherum a go, proof of labor programs that profit China weirdly, however all the things else continues to be in limbo or worse, regulated via enforcement. The message there may be blockchain digital currencies aren’t welcome within the U.S.”
Nonetheless, Larsen additionally acknowledged the necessity to help legislators and known as for the {industry} to return collectively. “We’ve received to vary up right here or we’re going to lose our management, stewardship of the worldwide monetary system, and that might be a tragedy for the U.S.,” he mentioned.
In an interview with CNN earlier this month, Garlinghouse additionally known as for regulatory readability. “It’s holding again the entire {industry},” he mentioned. “Within the earliest days of the web right here within the U.S., the U.S. led as a result of there was regulatory readability. The web is the explanation we’ve the Amazons and Googles right here within the U.S. at this time. We are able to, I imagine, have that with the blockchain and crypto-industry, however it requires that readability, that certainty for traders to proceed to take a position.”
Aside from pure regulatory issues, Ripple has additionally been embroiled in its fair proportion of legal issues. Additionally it is presently dealing with a category motion for failing to register XRP as a safety.
