Does the United States Regulate Cryptocurrency Enough? | Ripple CEO Says No

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money.

According to Ripple CEO Brad Garlinghouse, the United States is “eight ball behind” other major global economies when it comes to clarifying how it will regulate digital assets.

And that’s a problem for investors, he says.

“Without [regulatory] clarity, you navigate in uncertainty. It discourages investment, and it certainly discourages investment here in the United States,” Garlinghouse said Thursday during an Axios event on crypto regulation.

Ripple was founded in 2012 and describes itself as a blockchain-based alternative to SWIFT, the global messaging system that enables banking transactions. The company has fought a lengthy legal battle with the Securities and Exchange Commission over allegations that Ripple illegally sold securities through sales of XRP, an altcoin the company uses to facilitate cross-border transactions. The SEC claims that XRP, the sixth largest cryptocurrency by market, is a security, while Ripple argues that it is a commodity.

The outcome of the lawsuit could be a turning point for the crypto industry. Ripple could be on the way to victory after clearing a big hurdle this week, but if the SEC wins, most tokens or coins traded on platforms in the United States could be considered securities. This, in turn, could determine how the crypto industry develops and is regulated.

So what does this mean for investors?

For crypto investors wondering what to make of regulatory discussions and new developments – including President Biden’s executive order on cryptocurrency, the Federal Reserve’s digital currency report, and the recent announcement from the SEC to regulate crypto exchanges – many experts say that crypto regulation is actually a good thing. Increased regulation could increase market stability and the value of crypto and provide new protections for investors.

Cryptocurrency is still in its infancy as an asset class, so any new regulations have the potential to have a big impact on investors’ portfolios. But regardless of what regulation looks like in the future, here are three things experts say crypto investors should do now to be prepared:

1. Stick to your investment strategy

Sticking to your strategy is probably the best course of action, no matter what happens with regulations. Crypto investors should think about their strategy the same way as the stock market – experts say you shouldn’t stop contributing to your Roth IRA or 401(k) on a bad day or a big one. title, so you shouldn’t drastically change your long-term crypto strategy either.

2. Keep records and report tax earnings

You must also keep records of your crypto transactions for tax purposes and report any income or capital gains made through crypto trading. The IRS currently considers virtual currency to be property, so selling or trading crypto is considered a taxable event. You may also want to review your previous tax returns if you have undeclared crypto and consider getting a crypto portfolio tracker to help you stay on top of your transactions.

3. Diversify and protect your holdings

Take a few steps to protect your crypto assets, both from market volatility and potential security threats. Just like with traditional assets, experts recommend diversifying your crypto holdings to mitigate the impact any new regulations could have on individual cryptocurrencies or tokens. You should also consider moving your crypto holdings to a hot or cold wallet to further protect them from scams or hacks.

We would love to thank the writer of this short article for this awesome content

Does the United States Regulate Cryptocurrency Enough? | Ripple CEO Says No

Find here our social media profiles , as well as the other related pages