Ashish Birla, the Senior Vice President of product at Ripple was quoted stating that the largest challenge in running a company which primarily deals with cryptocurrency, more specifically, Ripple, is regulation. Therefore, Ripple is involved in ensuring that the next lot of clients that the startup acquires, must not be restricted by regulatory issues.
To deal with this, Ripple is creating a giant regulatory team.
“We are going around the world making sure that for the next 1,000 customers that we want to bring on… which we think we can do in the next two years… that regulation is not going to be an issue,” mentioned Birla during a panel session titled ‘Scaling and Digital Disruption in FinTech’ that was conducted by the University of Pennsylvania’s Wharton Scale School.
The U.S. Securities and Exchange Commission maintains a rigid stance that Ethereum and Bitcoin are not securities, but the same clarification, unfortunately, has not been given to XRP, making the question whether Ripple should be termed as a security or not, one of the largest regulatory challenges presently faced by the famed cryptocurrency. Yet, the company has maintained that it is not a security and this is staunchly seconded by Ripple Labs CEO, Brad Garlinghouse.
Garlinghouse is very clear about XRP not being a security, as XRP exists independent of Ripple and would continue to exist even if Ripple Labs were to fail. The ownership of XRP does not give Ripple the control in the same way that owning a lot of oil doesn’t give Saudi Arabia the control of oil.
The reason many countries across the globe are opting for a conservative approach when it comes to cryptocurrencies is that the industry in question is considerably very young, as observed by Birla during the ‘Scaling and Digital Disruption in FinTech’. According to him, Ripple Labs’ tech will aid and support relatively smaller finance based institutions to stand better against the big league players.
Hence, Birla regards what Ripple is doing as more of ‘Reshuffling the world order a little bit instead of disrupting banks’. Nevertheless, he acknowledges that cryptocurrencies may be the next big transformation the world is headed towards.