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Ripple offers real approach to cryptocurrency regulation

Ripple offers real approach to cryptocurrency regulation

San Francisco-based FinTech firm Ripple recently explained “how the existing financial regulatory framework” could be used to promote innovation and strengthen consumer and market protection.

In a three-page document published by Ripple, the California-based company described its “vision for a pragmatic regulatory framework for cryptocurrencies, blockchain-based payments and digital assets. Ripple said it hopes for a “regulatory framework that encourages unlocking the potential of cryptocurrencies and blockchain technologies while establishing important consumer and market protections”. Ripple believes that “any legislation or policy framework designed to regulate cryptocurrencies should facilitate an active dialogue between regulators and market participants” as such “public-private collaboration” should “lead to more tailored and effective policy outcomes for both the industry and consumers”. In addition, according to Ripple, “U.S. financial markets are considered first-in-class, and this is due in part to the existing regulatory framework within which they operate”. They say that this framework –provided it is “adapted”to “account for some of the unique characteristics inherent in cryptocurrencies”–could “provide the clarity that innovators –seek and the market protection that consumers deserve”. They go on to give examples of two existing legislative proposals in this area: “the Securities Clarity Act (SCA)” and the “Digital Commodity Exchange Act (DCEA, H.R. 8373 in the 116th Congress)”. Ripple's conclusion is that “each of the above proposals –whether implemented individually or together –can successfully preserve industry in the United States”.

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