For this installment, I spoke to Kavita Gupta, founder and general partner of Delta Blockchain Fund, to get her views on the regulatory landscape for the crypto industry.A long battle While the crypto community has lately been celebrating favorable news on the regulatory front in the U.S., it may not be enough to stop some crypto companies from moving out of the country, as digital assets regulation is more clear and friendly in some other jurisdictions, said Gupta.
In July, a federal judge ruled that Ripple Labs’ crypto token, XRP XRPUSD, +0.16%, is not a security when sold on digital-asset exchanges to the general public. The SEC has sought to appeal the court decision. “We have the election next year and it seems nothing will be changed until then. I think the election results are going to define the policies on this,” said Gupta.
“Widespread adoption of crypto-assets could undermine the effectiveness of monetary policy, circumvent capital flow management measures, exacerbate fiscal risks, divert resources available for financing the real economy, and threaten global financial stability,” the paper wrote.