Monica Long at Money 2020 SEC is not welcoming for us in the US
Monica Long, the President of Ripple, engaged in a conversation with Arjun Kharpal, Senior Correspondent for CNBC, at Money 20/20 to explore the necessary infrastructure for the implementation of cryptocurrencies.
Their discussion revolved around the theme of “Establishing Infrastructure Basics,” focusing on how traditional financial institutions perceive and adopt digital assets.
Long highlighted a significant shift in U.S. legislation and the attitude of traditional financial institutions, pointing to the approval of a Bitcoin ETF in the U.S. as a pivotal moment for crypto adoption. “BlackRock’s participation was a significant milestone,” Long remarked. She noted that many financial institutions are gradually embracing crypto technology, recognizing it as a modern financial framework.
Despite recent approvals of Ethereum (ETH) and Bitcoin (BTC) ETFs, Long stressed the importance of clearer regulations. When discussing the practical applications of digital assets, Long emphasized the benefits of institutional decentralized finance (DeFi) in fundamental banking operations.
“Essential financial services such as deposits, payments, lending, credit, and capital markets can greatly benefit from a more global, open, and efficient system,” Long explained, drawing parallels between blockchain’s potential impact on finance and the internet’s effect on communication.
Long lauded the European Union’s Markets in Crypto-Assets (MiCA) regulation as a model for a transparent regulatory framework and hinted at the improving relationship between the United States and crypto, albeit slowly.
Expressing cautious optimism about regulatory clarity in the U.S., Long suggested that stablecoin legislation could be a positive development.
Long also delved into the debate surrounding private versus public blockchains, highlighting that private blockchains are still utilized for technologies like central bank digital currencies (CBDCs), but public ledgers have seen notable advancements. For instance, Société Générale issued the first euro stablecoin on a public ledger.
Ripple is set to launch a regulated US dollar stablecoin.
Addressing the issue of fraud, Long emphasized the distinction between fraudulent activities and the technology itself, particularly in the aftermath of scandals like FTX.
“To clarify, within the industry, there are instances of fraud, such as the case of FTX finance. There are clear violations of compliance,” Long explained. “However, it’s important to recognize that the technology is not inherently flawed, and it’s unfair to paint all participants as fraudsters and criminals.”
Long stressed that while FTX’s collapse and fraud are damaging, there are still positive applications of blockchain technology within the crypto industry that should not be overlooked.
