Okay, let's talk about XRP. I’m reading headlines about its price skyrocketing, market cap surpassing Tether, all this so-called “great news.” It just makes me anxious. Not excited, anxious. This is not a story about celebrating gains, this is a story about understanding a systemic issue that is literally in front of our eyes. Ostensibly this dystopia would exist absent all regulation. If we don’t take our head out of the sand, it’s ordinary Americans who will pay the higher price.

Speculation Drives Unsustainable Growth?

XRP’s price can triple in a matter of three days! With this massive jump, its market cap is now an astonishing $152 billion, even surpassing stablecoins such as USDT. And before you crypto bros jump down my throat, let's be real: this isn't about genuine, organic growth. Further speculation and rumor perpetuate this state of affairs. These typical hype cycles have haunted the crypto space since its inception. We’re using rumors of possible Ripple-SEC settlements and market speculation over XRP ETF approvals. Where are the real-world applications? What’s the underlying value to support this sort of swing?

XRP is trading at its highest level since early March, yet it's still 24% below its all-time high from 2018. That’s five years of pump and dumps, possibly creating an entire generation of bagholders along the way. Whom do you suppose those bagholders will be? Not the institutional investors, not the crypto whales. Everyday Americans then get sucked in by the promise of easy, fast riches. Sadly, too many go on to lose all their savings.

Crypto's Wild West Hurts Everyone

This isn't just about XRP. It's about the entire unregulated crypto market. Consumer protection is a very dirty joke. Unfortunately, few are considering the very real market manipulation potential and dangers, particularly those who would profit from the most. How one single tweet or unfounded rumor can cause prices to spike or fall dramatically overnight. This volatility makes everyday investors susceptible to catastrophic losses.

This isn’t just an abstract economic principle at play. This has tangible impacts. The Wild West nature of the crypto market has the potential to put Americans’ hard-earned savings at risk. It threatens their retirement savings and housing stability. Others argue that it’s on investors to do their homework and be accountable for their actions. That argument doesn’t hold power when the playing field fits not level and that information is difficult to decipher.

Regulation Protects Not Stifles Innovation

Now, I know what some of you are thinking: "Regulation will stifle innovation! It will kill the crypto dream!" That's a false dichotomy. Regulation drives innovation by creating a level playing field. It’s the best way to protect consumers and to ensure that the market can flourish in the long run. Think of it like traffic laws. Do they limit our freedom to drive? Sure, in a sense. They keep roads safer for everyone, avoiding the boom and bust of chaos that increases the chances of more serious accidents.

Here are a few ideas:

  • Stricter KYC/AML requirements: This would make it harder for criminals to use crypto for illicit activities and help prevent money laundering.
  • Restrictions on leveraged trading: This would reduce the risk of massive losses for individual investors.
  • Increased transparency requirements for stablecoins: This would ensure that stablecoins are backed by real assets and can withstand market shocks.

Ripple is, of course, trying to plow ahead and build positive bridges within the industry. They are doing aggressive acquisitions, going after firms such as Hidden Road and Circle. That's not enough. We’re going to need more than the billion-dollar actors just getting caught up and cleaning up their own mess.

Time to Demand Action Now!

This isn’t only about protecting investors, it’s about building a more equitable financial system for all. Envision a society where the justice system stands as a buffer between the common man and the greed of the rich. In this ideal system, innovation thrives without putting consumer safety at risk, and we work to factor in the environmental costs of cryptocurrency.

Environmental impact matters. Even though XRP is much less energy-intensive than Bitcoin, the larger crypto ecosystem and its carbon footprint is still massive. We must continue calling for more sustainable crypto practices, and regulation can help incentivize those practices.

So, what can you do? Contact your elected officials. Explain to them that you want them to push for stronger regulation of the crypto industry. Insist that they do the right thing and protect consumers to help build a fairer financial system. So don’t allow the hype and the click-through and the headlines coming out of September to deter you from what’s actually at stake. Our future of finance is on the line, and it’s time that we all start to raise hell and compel a seat at the table. Let's turn this anxiety into action.