Ripple presents a possible regulatory framework for the cryptocurrency industry in the USA

Ripple, the company whose executives have often criticized America’s apparent lack of regulatory clarity in the cryptocurrency sector, it has presented its own “pragmatic” framework.

In an entry posted on its website Tuesday, Ripple revealed its vision for a regulatory framework aimed at promoting innovation while protecting US investors. According to the company, regulators should be encouraged to promote controlled innovation environments, some of the frameworks that exist in the country can be applied to cryptocurrencies, and there should be “an active dialogue between regulators and market participants”.

Ripple spoke out in favor of the proposed measures since a way to provide regulatory clarity to everyone in the cryptocurrency space “in a way that an ad hoc regulatory approach simply cannot”. According to the CEO Brad Garlinghouse, the suggestion was “Developed to address and solve the specific challenges facing the industry”.

Ripple presents a possible regulatory framework for the cryptocurrency industry in the USA
Ripple presents a possible regulatory framework for the cryptocurrency industry in the USA

When it comes to controlled regulatory environments, the company said the The “Safe Harbor” proposed by SEC Commissioner Hester Peirce, according to which network developers have a grace period to work without being subject to certain federal securities laws, would be necessary to “encourage innovation”. Ripple acknowledged that such a move may not appeal to “many mature projects” in the area.

The company also endorsed the laws governing digital assets that U.S. lawmakers are currently investigating. The company said that Law for the Assurance of Clarity, or SCA for its English acronym which would change the legal status of any asset sold as an “Investment Contract” to an “Investment Contract Subject”, it would help provide regulatory clarity for cryptocurrencies.

Next to the The Digital Commodities Exchange Law would complement the SCA when securities laws are not applicable to certain token projects, which makes them more like commodities from a regulatory perspective. The proposed legislation could give the Commodity Futures Trading Commission the power to oversee the digital asset exchanges that deal with such assets.

To improve communication between the public and private sectors, Ripple supported the Innovation Barriers Removal Act introduced in April by Rep. Patrick McHenry. The bill aims to clarify the role of the SEC and the CFTC in the country’s efforts to regulate cryptocurrencies, but would also require the two agencies to set up a task force focused on digital assets.

“The development of an effective political framework for cryptocurrencies will only be possible if there is clear communication and cooperation between private and public actors”, said Ripple’s chief of public order, Susan Friedmann. “So we have been proactive and bipartisan about the issue with regulators and members of Congress. […] Those conversations have helped shape our view of the kind of regulatory clarity that the industry and the wider ecosystem need from regulators, as well as the kind of demands regulators need to place on the industry. “

Ripple co-founders Chris Larsen, Garlinghouse, and CTO David Schwartz have raised concerns about the “patchwork” of regulations that crypto companies are forced to navigate across the United States. Although the company’s current headquarters are in San Francisco, executives have previously indicated they are considering leaving the United States for “friendlier jurisdiction.”

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