Former Federal Reserve Official Praises Ripple and XRP’s Role in US Crypto Policy – Times Tabloid

Gregg Kidd, former senior analyst at the Federal Reserve Board and current congressional candidate from Nevada, recently spoke at the XRP Las Vegas 2024 conference. His remarks shed light on the influence of Ripple and XRP in shaping cryptocurrency-related public policy in the United States.

From traditional finance to Ripple

Kidd’s journey from Federal Reserve Ripple began when he met the then emerging San Francisco payments company. He recognized Ripple’s potential, describing it as a company that “promises” a new approach to financial transactions compared to the established systems he was familiar with at the Federal Reserve.

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At the time, Ripple’s technology resembled a distributed ledger similar to Bitcoin’s but with crucial distinctions. According to Kidd, it incorporated two additional data fields: one for the issuing entity and another for the specific currency being transacted.

This innovation piqued Kidd’s interest, pushing him to learn more about the “future” represented by XRP and Ripple, as he called it. He credited Arthur Britto and David Schwartz, two of the architects of XRP Ledger, for their role in its transition “from the world of the Federal Reserve story to the entirely new universe brought about by

Ripple’s impact on public policy

Having joined Ripple as Chief Risk Officer in 2013, Kidd found himself in discussions about compliance and risk management with Chris Larsen, Ripple’s executive chairman. While Larsen initially questioned the need for such measures due to Ripple’s lack of pressing compliance issues at the time, the conversation foreshadowed future legal battles Ripple would face.

In December 2020, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, claiming that XRP is an unregistered security. This landmark case marked one of the first enforcement actions against a major cryptocurrency company and brought Ripple to the center of the ongoing debate over cryptocurrency regulation.

Read also: Judge Allows Ripple to Depose SEC Official Who Classified Ethereum (ETH) as a Currency

The legal battle had broader implications. A US court’s declaration of XRP as non-security could be cited by other cryptocurrency companies, including Coinbase and BinanceUS, in their ongoing disputes with SEC. Terraform Labs has already adopted this strategy in its legal battle.

Kidd expressed his belief that Ripple has played a critical role in shaping US crypto policy by actively challenging the SEC’s position. Industry observers have recognized Ripple’s leadership in combating regulatory uncertainty in the American crypto landscape.

The ongoing legal battle between Ripple and the SEC will continue to shape public policy related to cryptocurrency in the United States. Regardless of the outcome, Ripple’s role in this case has undoubtedly had a significant impact on the conversation.

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