Ripple will lead a group crypto-related establishments to seek legislators and financial regulators in the Washington D.C. to lobby their support for cryptocurrency and its bedrock technology; Blockchain.
Based on a recent report by Bloomberg, the coalition of San Francisco-based crypto startups is on a mission to visit Klein/Johnson Group, a bipartisan lobby group, to help the crypto and blockchain community convey to regulators how much government support the crypto sector needs. This new group named the Securing America’s Internet of Value Coalition’s aim to soften the seemingly stringent government position on the emerging industry.
The Securing America’s Internet of Value Coalition
The coalition and the consulted lobby group would raise some salient issues with the United States Congress and also the SEC (Securities and Exchange Commission), the Internal Revenue Service (IRS), and other agencies that are related to cryptocurrencies.
It can be inferred from the preliminary agreement that the fintech lobby group Klein/Johnson will be receiving up to $25,000 per month and 10,000 in Ripple (XRP) for their services to the coalition. Reportedly, the company would be converting the cryptocurrency into USD before disclosure of payment on Federal lobbying forms.
Alongside Ripple, as well as independent foundation RippleWorks, the coalition also features digital payments firm Coil, a cryptocurrency investment startup Yaka, and PolySign, a startup that is set to launch a crypto custodian.
Cryptocurrency Sector Regulations Needs Certainty
The coalition aims to increase the level of attention of the Congress and other agencies like SEC towards virtual currencies. This month a group of Congress legislator sent a letter to the SEC requesting that the financial regulators to provide more certainty regarding cryptos, most especially ordering the SEC to answer the question, are digital currencies securities or not?
The U.S. House of Representatives recently passed a bill to establish a crypto task force to combat terrorist use of cryptocurrencies on September 26. And in June, SEC chairman Jay Clayton claimed that Bitcoin (BTC) which is the major virtual currency as not being security due to its functionality as a substitute for the fiat currency. Almost a week later, a senior official of the SEC claimed that Ethereum, a top altcoin, does not pass for security as Ethereum co-founder had previously denied that ETH was ever a security.
As regards Ripple, the company’s chief market strategist, Corey Johnson said that Ripple is”100 percent clear” and not anyway a security as it fails to meet the standards of a “security is based on the history of court law.” It is only reasonable that the coalition is formed at this point in time where there are several regulatory uncertainties in the country.