Securities law in the United States has sparked a new debate in the cryptocurrency sphere; however, Ripple Foundation is among those welcoming the move.
The Ripple XRP token has gotten native support on Coil, the crypto-based content monetization platform, through Bitpay, the payment service provider based in the United States. This development will allow an increased adoption of the XRP token, by crypto users and numerous businesses, although many regulations are still appearing over the XRP project.
Asheesh Birla, the Senior Vice President of Product at Ripple, has positive views regarding the prevailing securities law in the country. He believes that the securities law will be beneficial for the cryptocurrencies, as the crypto industry will not expand without defined regulations.
The idea of initial coin offerings (ICOs) had taken over the crypto market as of 2017, while numerous projects were formulated to gather money by utilizing tokens.
Securities law affecting the market
Although, around forty percent (40%) of the projects were started by cheats and fraudulent individuals who took off with the collected money.
While the rest of these projects have declined by eighty percent (80%) in terms of their value, and the United States Securities Exchange Commission (SEC) has suppressed companies that have been operating with ICOs in the United States. This crackdown by the SEC has demolished the Initial Coin Offering (ICO) market.
People have gotten acquainted with the idea of tokenization, in which they convert assets to liquid.
Asheesh Birla furthers that tokenization can be used in real estate, in which people face problems trying to gather money. Once assets are tokenized, people can consider developing and utilizing derivative products.
Birla seemed rather confident about the concept of tokenization, while she spoke of smart contracts that would be used to control the trading of assets. This would allow the legal team to stay away from stock transfers, and help the company to make its way into other markets.