San Francisco-based FinTech firm Ripple recently explained “how existing financial regulatory frameworks can be used
to advance innovation and enhance consumer and market protections.”
In a three page document published by Ripple, the Californian firm described its “vision of a pragmatic regulatory framework for cryptocurrencies, blockchain-enabled payments and digital assets.” Ripple mentioned that it hopes for “a regulatory framework that encourages the unleashed potential of cryptocurrency and blockchain technologies, while also establishing important consumer and market protections.”
Ripple believes that “any legislation or policy framework intended to regulate cryptocurrencies should promote an active dialogue between regulators and market participants” since such “public-private collaboration” should “lead to more tailored and effective policy outcomes for the industry and consumers alike.”
Furthermore, according to Ripple, “U.S. financial markets are considered first in class and that is due in part to the existing regulatory framework under which they operate.” They say that this framework — providing it was “adapted” to “account for some of the unique attributes inherent to cryptocurrencies — could “provide the clarity innovators seek – and the market protections consumers deserve.”
They then 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 separately or together –can succeed in keeping industry within the U.S. while also maintaining the strong consumer and investor protections that have made American capital markets the best in the world.”
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.