Ripple Labs Urges Clear Regulations in Ongoing Lawsuit with SEC
Ripple Labs recently held a media briefing at the Ripple/TRM Labs Summit event in Seoul, South Korea. The focus of the event was the ongoing lawsuit with the US Securities and Exchange Commission (SEC) that has been going on for more than two years. Ripple Labs emphasized that “American innovation and industry are at stake in the ruling of this lawsuit.”
Brooks Entwistle, Senior Vice President, Global Customer Success and Head of Asia Pacific, Middle East & North Africa (MENA) at Ripple Labs, maintained a resolute attitude while answering questions related to the lawsuit. He stated that the impact of the ruling would be minimal as more than 90% of their services are outside the United States. However, he also warned of the possibility that cryptocurrency companies’ exodus from the United States will accelerate if regulatory clarity is not established.
During the lawsuit with the SEC, Ripple Labs argued that US regulations were not clearly established. Vice President Brooks stated that the cryptocurrency business is concentrated in countries with clear regulations, such as Singapore and Japan, and alluded to US regulators, pointing out that “it is not right to try to establish regulations in the process of cracking down.”
Ripple Labs also requested clear regulations from the Korean regulatory authorities. Rahul Advani, head of Ripple Asia-Pacific policy, emphasized the importance of clear regulation as the basis for innovation. He presented three tasks for ‘clear regulation’: preparing a token classification system, risk-based regulatory framework, and public-private cooperation. He also expressed his expectations for the ongoing revision of the Capital Markets Act and the enactment of the Basic Act on Digital Assets in Korea.
Advani said, “A cryptocurrency classification system will be established in Korea next year. For risk-based regulation, please refer to other markets such as Japan and Singapore that have already adopted this method.” He also emphasized the importance of public-private cooperation to settle Korean regulations.
In conclusion, the lawsuit with the SEC is crucial for Ripple Labs and the cryptocurrency industry. Ripple Labs is calling for clear regulations to establish a stable and innovative market. It is hoped that Korean regulatory authorities will heed the call for clear regulations to foster innovation and attract more utility in the blockchain market.
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