Ripple brings fight to lawmakers to put an end to “SEC hostility”

Rick Steves

It is no secret that Ripple has chosen to take on the SEC in a fierce legal battle rather settle with the agency like many others have before them.

The sense that the outcome of the SEC v. Ripple could dictate in part the future of digital asset regulation and enforcement increases every day.

It is no secret that Ripple has chosen to take on the SEC in a fierce legal battle rather settle with the agency like many others have before them.

Ripple Labs and its co-defendants, Chris Larsen and Brad Garlinghouse, might have taken the hard way out but they are on a mission to shape the digital asset space, which includes attempting to limit the SEC’s role in cryptocurrency enforcement.

Stuart Alderoty, Ripple’s general counsel, said in an interview that “the SEC’s approach under the current administration has been hostile” and it is “doubling down on regulation by enforcement” instead of providing clarity.

The legal expert added that Ripple is “uniquely situated to lead this discussion” regarding the digital asset framework in the United States. “This is not a case only about Ripple. We are fighting on behalf of the industry.”

A real approach to cryptocurrency regulation

Ripple has released a paper that calls on regulators, lawmakers and the industry to come up with a framework for the ecosystem.

“Cryptocurrency and blockchain technology need clear regulatory and licensing frameworks designed to address and remedy the specific challenges to our industry. All of the proposed measures discussed in this framework aim to provide legal clarity to industry, markets, and consumers in a way that a regulation-by-enforcement approach simply cannot,” said Ripple CEO Brad Garlinghouse.

Ripple mentions the Securities Clarity Act (SCA), which proposes a new term — “investment contract asset” — and makes clear that such assets should be considered separate and distinct from any securities offerings they may have been a part of.

The Digital Commodity Exchange Act (DCEA), which is complementary to the SCA, seeks to create a federal definition of “digital commodity exchanges” and charges the CFTC with authority to register and oversee them, similar to the requirements in commodity derivatives markets.

The blockchain specialist is also backing SEC Commissioner Hester Peirce’s sandbox idea, under which network developers would be exempt for three years from the registration provisions of federal securities laws, during which time they would be allowed to launch their products and develop their networks through token transactions.

If “network maturity” has been achieved at the conclusion of the three-year period, token transactions would not trigger securities registration requirements, under SEC Peirce’s proposal.

“The current uncertainty in the U.S. regulatory landscape discourages innovation and could cause a “brain drain” in the cryptocurrency and blockchain space. In order to incentivize innovation and inform the development of a clear and consistent regulatory framework for cryptocurrencies, we believe innovation sandboxes should be encouraged.”.

The abovementioned brain drain is increasingly possible as blockchain has gained momentum all over the world and many countries are taking measures to promote the development of their digital asset ecosystems.

Last week, Binance announced it is injecting €100 million in an R&D blockchain project in France.

Read this next

Digital Assets

Bitcoin.com Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

Retail FX

TradingView integrates first Brazilian broker, Órama Investimentos

Órama offers all kinds of investment products, from fixed income to crypto-related funds.

Digital Assets

TRON approves Wintermute to mint, burn USDD stablecoin

TRON Reserve DAO has welcomed crypto market-making giant Wintermute as the ninth member and whitelisted institution to mint Tron network’s stablecoin, Decentralized USD (USDD).

<