By
Steve Muchoki
April 19th, 2024
The published ruling could provide a strong stance to the Commodity Futures Trading Commission to overlook exchanges that manage commodities.
In a Tuesday post on its website, California-based technology company Ripple released its own set of the “pragmatic” framework for regulations in the crypto industry.
The company’s professionals have frequently attacked the United States’ apparent inadequacy of regulatory coherence on the cryptocurrency industry. In order to set a definite set of rules to advocate their own ideas, Ripple published an administerial and regulatory structure that targets development and innovation, while securing the trust of investors in the United States. In its recent blog post, the company behind XRP suggested regulators promote innovation sandboxes while advocating a healthy dialogue between regulators and market contenders.
The prescribed pointers have been put forward to furnish all the people in the crypto world with some clarity. According to the company, an impromptu regulation-by-enforcement infrastructure proves to be less effective and should be replaced by a better vision of what rules and mandates actually mean. Chief Executive Officer of Ripple Brad Garlinghouse asserted that the plan was curated to cater to some pressing challenges in the industry that need an immediate solution.
On the note of regulatory sandboxes, the company claimed that the “safe harbor” coined by the SEC Commissioner Hester Peirce wherein the network developers receive a grace period to create while dodging the federal security laws is essential for development and innovation. Ripple pointed out that the proceedings may not help several developed and full-fledged projects in the space.
Ripple also approved of and promoted the idea of involving legislation in the digital space. According to the post, the Security Clarity Act (wherein the legal status of any asset traded as an investment contract) can furnish administrative lucidity for the digital tokens.
Moreover, when the securities law is not applicable, the Digital Commodity Exchange Act would accompany the SCA. The published ruling could provide a strong stance to the Commodity Futures Trading Commission to overlook exchanges that manage commodities.
Jumping on the topic of conversation between the public and private sector, Ripple suggested the Eliminate Barriers to Innovation Act initiated by Representative Patrick McHenry. The act is in particular, an epitome of a public-private partnership that prompted regulators to work with crypto industry entities. This particular bill focuses on providing a definitive outline of the role of the SEC and CFTC in the country’s regulatory infrastructure.
Ripple also believes in editing and customizing workable regulations that are already out there to help operations in the crypto industry. The company calls US financial market first in class and assures that conveniently modifying the infrastructure a bit would furnish the innovators with a much-need coherence on laws.
According to Ripple’s head of public policy Susan Friedman, to come up with an intricate and detailed framework for cryptocurrencies will only be possible if there is a transparent stream of dialogue between the private and the public market participants.