San Francisco-based fintech Ripple explains in a three-page document how existing financial regulatory frameworks could be used for crypto.
The crypto fintech Ripple has published a new document in which it explains how it envisions the regulation of the crypto space. In the tripartite treatise the Californian company describes its “vision of a pragmatic regulatory framework for cryptocurrencies, blockchain-based payments and digital assets”. With this, the company behind XRP is expressing its hope for regulations that recognize the potential of cryptocurrencies and blockchain technologies and at the same time introduce important consumer and market protection measures.
The US financial markets are considered first class. This is partly due to the existing regulatory framework under which they operate. We believe that if this framework is successfully adapted to some of the unique characteristics of cryptocurrencies, it can provide the clarity that innovators seek. And consumers get the market protection they deserve
the document says.
Ripple wants clear rules and praises Hester Peirce
This is followed by two examples of two existing legislative proposals in this area. On the one hand the Securities Clarity Act (SCA) and the Digital Commodity Exchange Act (DCEA). The latter is an attempt at a regulatory mechanism since, according to Ripple, the existing securities laws do not apply to digital tokens. Ripple is also pursuing exactly this line of argument in the long-running legal dispute with the US Securities and Exchange Commission. But Ripple also implicitly defends itself against arguing only in its own interest:
The current uncertainty in the US regulatory landscape discourages innovation and could lead to a brain drain in the fields of cryptocurrencies and blockchain
is another thesis. A consistent regulatory framework for cryptocurrencies would provide incentives for innovation. Ripple also intends to promote “innovation sandboxes”. Fintech also welcomes the Proposal from SEC Commissioner Hester Peirce, according to which blockchain developers would be exempt from the registration requirements of the federal securities laws under certain conditions and for a limited time.
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