In a Tuesday post on its website, Ripple released a set of guidelines for regulating the blockchain and cryptocurrency space that it calls a real approach to cryptocurrency regulation.
Today, we were proud to release our vision for ‘A Real Approach to Cryptocurrency Regulation’, a framework designed to offer an immediate and pragmatic approach to cryptocurrency and digital asset regulation in the United States. https://t.co/hllGSzWi88
— Ripple (@Ripple) November 16, 2021
Ripple is encouraging the creation of crypto regulation sandboxes in the U.S.
The San Francisco-based blockchain company has laid out its vision for crypto regulation in the U.S. within a proposed new framework, making a case for “clear communication and collaboration.”
According to Ripple’s head of public policy, Susan Friedman, this proposed policy framework was formed in part through discussions with regulators and members of Congress, and the Ripple CEO, Brad Garlinghouse, commented that Ripple’s proposed measures offer advantages as compared to “a regulation-by-enforcement approach.”
It mentions the Eliminate Barriers to Innovation Act, a bipartisan bill passed by the U.S. House of Representatives in late August. The legislation aims to establish a collaborative cryptocurrency working group for the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
The proposal suggests a three-pronged approach:
- Encouraging public-private collaboration.
- Adapting regulatory frameworks that already exist.
- And what is called cryptocurrency innovation sandboxes.
Ripple believes that the current regulations that govern traditional markets in the U.S. can be applied to cryptocurrencies. But they must be adapted to the new technologies.
“We believe that framework, as adapted to account for some of the unique attributes inherent to cryptocurrencies, can provide the clarity innovators seek – and the market protections consumers deserve,” they stated.
Finally, Ripple is also advocating the implementation of an innovative sandbox mode that allows crypto startups to conduct token sales for a certain grace period without complying with existing securities laws.
According to them, the innovation sandboxes for cryptocurrencies are safe harbor regimes that allow network developers to launch products and develop networks for a limited period without needing to comply with federal securities laws, provided certain conditions are met.
As AZCoin News reported, Both Coinbase and Ripple violate federal securities laws. While the former had to abandon its lending product following regulatory threats from the regulator, the latter fought a major SEC lawsuit.
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