Ripple encourages the creation of crypto regulatory sandboxes in the United States
San Francisco-based blockchain company Ripple has laid out its vision for regulating cryptocurrencies in the U.S. in its newly proposed framework, making a case for “clear communication and collaboration.”
He mentions the Eliminate Barriers to Innovation Act, a bipartisan bill that was passed by the US House of Representatives in late August. The aim of the legislation is to establish a joint cryptocurrency working group for the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
Ripple also believes that existing regulations that govern traditional markets in the United States could be applied to cryptocurrencies. However, they have to be adapted in order to be suitable for novel technologies:
We believe this framework, tailored to take into account some of the unique attributes inherent in cryptocurrencies, can provide the clarity innovators seek – and the market protections consumers deserve.
Finally, the blockchain tech provider is also advocating for implementing an innovation sandbox regime that would allow crypto startups to conduct token sales during a certain grace period without complying with existing securities laws.
Last month, Representative Patrick McHenry (R-NC) introduced a safe harbor bill for digital tokens that mirrors a similar proposal released last year by the SEC Commissioner, Hester Peirce, in favor of the cryptography.
Last month, Coinbase proposed creating a dedicated regulator for cryptocurrencies, thus replacing the SEC.
Coinbase and Ripple have both violated federal securities laws. While the former has had to ditch its loan product after legal threats from the regulator, the latter continues to fight a massive SEC lawsuit.
