Ripple has editor an “immediate and hands-on” approach to developing an effective policy framework while also offering an industry insider’s perspective on crypto regulation.
In an effort to curb the “tyranny” of the US Securities and Exchange Commission (SEC), Ripple has proposed a greater role for the Commodity Futures Trading Commission (CFTC) and public-private collaboration.
Ripple is still pursuing a lawsuit filed by the SEC last December alleging that the company made more than $ 1.38 billion worth of XRP through the provision of unregistered securities services.
More industry collaboration and crypto innovation sandbox
The company has proactively elucidated the concept of cryptocurrencies and digital asset regulation in a series of “immediate and practical” optimizations, starting with allowing both the private sector to join the public to propose legislation.
“Promoting this type of open dialogue is the real purpose of the Barriers to Innovation Act,” emphasizes Ripple, emphasizing open dialogue with industry insiders.
“The bill requires the creation of a collaborative working group made up of representatives from the SEC and the CFTC, as well as representatives from fintech companies, finance companies and small businesses. The House of Representatives passed the bill and is still pending in the Senate.
Stuart Alderoty, Ripple’s General Counsel, has spoken out criticize SEC for being hostile on many occasions.
“The SEC demands and wants to volunteer. The SEC then threatened execution without explanation. The SEC will not drop the case if the conditions are not met, thus increasing intimidation and aggression. Known as autocracy in other countries. We have to get better.
Their preferred method of crude intimidation and inconsistent application of opaque rules will ultimately harm consumers and markets. ”
After Pennsylvania Senator Pat Toomey put pressure on SEC Chairman Gensler, he also called for an industry response to cryptocurrency and blockchain legislation. Ripple’s policy framework was given as a specific response. Stuart Alderoty was tweet:
“Senator Pat Toomey asked for feedback on cryptocurrency and blockchain legislation. Ripple answer:
– Promote innovative sandboxes for cryptocurrencies.
– Strengthening cooperation between the public and private sectors.
– The Senate must intervene and review existing legislative efforts. ”
In addition to calling for more collaboration with industry, the company also pointed out the importance of promoting innovation sandboxes and creating a “safe haven”.
Ripple recommends allowing developers “to bring products to market and expand the network for a limited period of time without complying with federal securities laws, as long as certain conditions are met.”
Adjust the existing financial regulatory framework
Ripple also recommends revising the current financial regulatory framework to regulate cryptocurrencies.
Here the company pointed out 2 proposals that target the current state of affairs and at the same time adapt it to enable crypto and blockchain innovations.
The Securities Clarification Act (SCA) proposes a new term – “investment contract assets” – and makes it clear that such assets should be treated separately and separately from all securities offers in which they may have been involved, “explains Ripple the first proposal around the unique Address properties of cryptocurrencies.
With the latter suggestion, Ripple recommends that the CFTC take the lead:
“The Digital Commodities Exchange Act (DCEA), which supplements the SCA, aims to create a federal definition of a“ digital commodities exchange ”and the CFTC has the power to register and monitor this, similar to the requirements in the commodity derivatives market.
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