Ripple’s Executive Elected to Fed’s Faster payments Task Force

Earlier this year, the US Fed launched the Faster payments Task Force to join hands with payment processors to improve the US payment system in accordance with the report titled “Strategies for Improving the US Payment System”, published on January. To assist the Task Force, a 16-member steering committee was elected. Ryan Zagone, Head of Research on the Ripple’s Business development team is one among them.

More than 300 participants representing a diverse range of segments including financial institutions, trade groups, technology providers, businesses, end users, payment networks, and government organizations had expressed their interest to join the organization. Ripple Labs has stated that it is “humbled to have been elected by our peers to be a voice of the technology and non-bank service provider sector.”

Ryan’s job in Ripple involves coordination with financial institutions, central banks, and regulators on infrastructure efforts and faster payments initiatives globally. Ryan has tremendous experience in handling such matters in the US, UK, Euro zone, and Canada. Before joining Ripple, Ryan was in charge of payments innovation and retail bank strategy at Deloitte. Before that, Ryan worked on economic research and regulatory relations at the American Bankers Association.

Regarding the membership Ryan said

“It’s a privilege to be selected. I look forward to leveraging Ripple’s global experience as the task force assesses ways to increase speed, efficiency, access to, and competition in payments.”

Ryan stated that he will employ the constructive approach of Ripple Labs while working with peers, bankers, and other members of the broader financial industry, including NACHA, IPFA, and the W3C.

Ryan further stated

“Above all, I am committed to being an open and inclusive presence on the task force, representing the priorities and concerns of fellow non-bank service providers.”

In the recent past, there has been a considerable debate over Ripple’s status. In fact, two class action suits have been filed in the past two months alleging that Ripple is a security, which has violated the federal laws.

However, it should be noted that FinCen (Financial Crimes Enforcement Network) has accepted the registration of XRP Fund II, LLC, a wholly-owned subsidiary of Ripple Labs in South Carolina on July 1, 2013. A year later, XRP Fund II changed the name to XRP II, LLC. The registration agreement clearly says “the currency of Ripple network, known as ‘XRP’ was pre-mined. In other words, unlike some other virtual currencies, XRP was fully generated prior to its distribution. As of 2015, XRP is the second-largest cryptocurrency by market capitalization, after Bitcoin.”

If Ripple is not a security, then FinCEN would not have registered Ripple. FinCEN has the power to determine whether an asset is a currency. Furthermore, the section 2(a)(1) of the Securities Act clearly defines a security as

any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a “security”, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.

Ripple possess none of the above characteristics.