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Financial technology companies are forming a group that includes lobby lawmakers and regulators of the cryptocurrencies, and they are planning to pay their advocates in Washington partly in the form of digital coins.
Almost every firm that is based in San Francisco is involved with the digital money transfer. On Thursday this week they plan on declaring their coalition and how they will continue to keep the Johnson Group, which is a bipartisan lobby shop specializing in financial and technological services issue.
All of this is happening because of the pressure that the U.S. Congress and SEC (the Securities and Exchange Commission) place on the cryptocurrencies. They have been trying to understand and determine the kind of federal rules that should be levied on digital currencies along with blockchain technology that primarily rules all of these companies. A massive and stressful concern about how the digital coins are being used for criminal activities and other fraudulent purposes are on the rise.
The Fintech Firms have assured to contribute to the agreements taking place amidst the members of Congress, SEC, IRS, and different agencies that are concerned with the regulations regarding the cryptocurrencies. However, they wish the government won’t cause any obstruction in the path of innovation and creativity.
This group emerges and proclaims itself as a boon that will ensure safe payments around the world without any discrepancies or middlemen. It can show how it is the future of financial transactions that somehow remains complicated enough to explain its implications to law makers.
The chairman of Ripple, Chris Larsen. made a statement about how he understands the uncertainties and confusion related with digital coins, but that he is yet glad that D.C. is showing interest in cryptocurrencies.
However, there is a matter of concern for Ripple. It has to state whether the XRP digital tokens that are closely associated with the company, form of security that is subjected to any kind of regulation. They made it clear that both Ethereum and Bitcoins are not.
This coalition includes several other firms like Coil, Hard Yaka, and also Polysign.
Klein/Johnson is about to earn $25,000 every month along with 10,000 XRP from the coalition. Once the payment is received in XRP, Klein/Johnson will convert it into dollar after disclosing the amount on the forms of Federal lobying. All of this will give the firms a true taste of what is happening in the market.