Former U.S. Presidential Candidate Ron Paul: “I’m All for Cryptocurrencies”

Siamak Masnavi

Texas Libertarian Dr. Ron Paul, who is a former U.S. presidential candidate (three times, in 1988, 2008, and 2012), discussed his views on blockchain technology and cryptocurrencies in an interview on Thursday (August 15). Also, a day earlier, he issued a statement on the Federal Reserve's upcoming FedNow Service.

Blockchain and Cryptocurrencies

Dr. Paul's comments came during an interview on Thursday on CNBC's "Squawk Alley"

When asked about Facebook's proposed cryptocurrency Libra, Paul said that he did not know what was going to happen with Libra, but had this to say about blockchain and crypto in general:

I'am all for cryptocurrencies and blockchain technology because I like competing currencies... I'm for the least amount of regulation. I don't know what's going to happen to cryptocurrencies. I think it's great idea. And I only have one rule: no fraud.

The FedNow Service

America's central bank, the Federal Reserve, announced via a press release issued on August 5 that Federal Reserve Banks "will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States."

On Wednesday (August 14), Campaign for Liberty, a nonprofit political organization founded by Ron Paul that promotes respect for the U.S. Constitution, issued a statement (posted on its national blog) by its Chairman, Ron Paul, about the proposed FedNow Service:

"Consumers already have numerous options to make real-time payments, so the Federal Reserve’s decision to begin work on a central bank-run and controlled real payments system—what Competitive Enterprise Institute Senior Fellow John Berlau calls “FedNow”—is baffling.

"A Federal Reserve-run real payments system will crowd out private alternatives, leaving consumers with one government-run option for real-time payments. This will be bad for consumers and real-time entrepreneurs but good for power-hungry Federal Reserve bureaucrats who will no doubt use FedNow to help “protect” the Federal Reserve’s fiat currency system from competition from crypto currencies."

Crypto Rating Council Evaluates Three New Cryptocurrencies as Securities

  • The Crypto Rating Council has released securities ratings for IOTA, Basic Attention Token and USDCoin.
  • The CRC, backed by Coinbase, Kraken and other US crypto firms, supports regulation clarity for the industry.

The Crypto Rating Council (CRC) has evaluated IOTA, Brave's Basic Attention Token (BAT) and the USDC stablecoin over whether they should be classified as securities. 

The CRC, backed by Coinbase, Kraken and other exchanges, is a collection of major United States-based crypto firms established in September 2019. The group advocates for and promotes regulation clarity in the industry of cryptocurrency, including analyzing whether or not certain assets should be classified as securities. 

According to an April 2 post, the CRC released rating scores for IOTA, USDC and BAT, in addition to updating its rating for Maker and Polymath. The scale ranks from 1 to 5 with a lower score correlated to few or no characteristics consistent with treatment as a traditional security. 

BAT was given a rating of 2.00, with the council highlighting the coin’s utility as fully open-sourced and supporting the development and use of the Brave Browser. IOTA also scored 2.00, indicating that the currency is unlikely to be viewed as a security.

USDCoin, a stablecoin backed by Coinbase and Circle, was rated 1.00 by the council, consistent with other stable price-pegged coins such as DAI.  

While the CRC’s determinations have no official impact on the opinions of regulators such as the Securities & Exchange Commission (SEC), they do provide some insight to investors on the state of crypto-assets. 

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