Ripple Comes Forth With Its ‘Realistic’ Regulatory Framework
According to a post on its website on Tuesday, Ripple stated its longing for a regulatory framework that would focus on advancing innovation and protecting U.S-based investors alongside. The firm suggests the need for regulators and market participants to meet at an active dialogue table.
As part of its suggestions, Ripple mentions how a forceful approach to regulation might not deliver the needed effects as opposed to providing regulatory clarity to all in the crypto industry.
The firm also supports the Security Clarity Act, or SCA — legislation that is presently being considered by U.S lawmakers, which would be applying to digital assets. If signed into law, the SCA will be changing the legal status of any asset sold as an “investment contract” to an “investment contract asset”. That’s some regulatory clarity.
Meanwhile, at some point when security laws would not apply to some token projects, the Digital Commodity Exchange Act would supplement the SCA. From all indications, that essentially makes them more like commodities especially from a regulatory point of view.
In a bid to address the communication gap between the public and private sectors, Ripple also supports the Eliminate Barriers to Innovation Act that was introduced by Representative Patrick McHenry in April. While the bill is already focused on shedding more light on the exact roles of the SEC and CFTC in the country’s efforts towards regulating crypto, both agencies must work on creating a group that will be entirely focused on digital assets.
Top Officials Lend Their Voices
Ripple co-founder Chris Larsen, CEO Brad Garlinghouse, and CTO David Schwartz have all shared their opinions about the present regulations under which U.S-based crypto firms are forced to go through, to be able to operate within the United States.
Presently having its headquarter based out in San Francisco, the executives of Ripple hinted at some point, that they were considering leaving the U.S. behind, in search of a friendlier region.
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