Amid the absence of clear cryptocurrency regulations in the U.S., Ripple’s Head of Public Policy, Susan Friedman, urges the nation to draw inspiration from the EU and UK’s regulatory approaches.

On April 21, 2023, she warned that the absence of such regulations drives activity offshore, ultimately hindering the monitoring of illicit and criminal activities. This, she noted, directly contradicts the goals of critics.

Friedman praised the European Union’s progressive approach to cryptocurrency regulation on April 20, 2023, highlighting the contrast with the U.S.’s emphasis on enforcement over clarity. She expressed excitement for Ripple’s growth in the European market.

In a tweet dated March 29, 2023, Friedman questioned the SEC’s resource allocation, as more than 50% of its staff is devoted to examinations and enforcement. She argued that this focus on enforcement is detrimental to markets and capital formation in the U.S., urging Congress to scrutinize the SEC’s budget request.

On February 1, 2023, Friedman applauded the United Kingdom’s consultation on establishing a clear and proportionate regulatory framework to foster innovation. She expressed hope that the U.S. would take note of the UK’s approach.

Friedman also shared her insights during a Treasury Committee meeting at the House of Commons, the lower house of the Parliament of the United Kingdom, on November 14, 2022, where she discussed the diversity within the crypto ecosystem.

During her testimony at the House of Commons, Susan Friedman, Ripple’s Head of Public Policy, made several noteworthy comments:

  • She emphasized the diversity within the crypto ecosystem and stressed that different tokens, projects, and businesses have unique purposes. She noted that Ripple is a business-to-business enterprise working with licensed financial institutions, and it’s essential not to generalize the entire industry or all tokens with a single characterization.
  • Friedman highlighted that not all tokens are created or intended for investment purposes. While speculation is a factor, the regulatory framework should recognize and accommodate both consumer-facing and business-to-business models within the crypto ecosystem.
  • She mentioned that Ripple’s current operations in the UK do not necessitate registration with the FCA. However, as the company expands in the country, it plans to seek the required registrations and permissions. She added that Ripple’s goal is to improve the efficiency of cross-border money transfers by leveraging blockchain and cryptocurrency technologies.
  • Friedman praised the European Union’s MiCA regulation for addressing consumer protection concerns and suggested that the UK could adopt certain aspects of MiCA as best practices. While Ripple does not target consumers directly, she acknowledged the need for consumers to have access to information and disclosures from issuers to make informed investment decisions.
  • She lauded the FCA’s taxonomy for its nuanced approach to regulation, categorizing tokens based on their specific purposes and uses. Friedman stated that a regulatory framework should recognize the various reasons for creating tokens and focus on regulating the associated businesses and risks.