New cryptocurrency bill proposed by Ripple
New cryptocurrency bill proposed by Ripple
Regulation

New cryptocurrency bill proposed by Ripple

By Fabiana D'Urso - 17 Nov 2021

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Ripple‘s regulatory case is still going on, but in the meantime, the company has put forward its proposed cryptocurrency bill.

The Ripple-SEC lawsuit

Although the end is not in sight, the lawsuit filed by the SEC against the blockchain company Ripple Labs seems to have reached a point of development.

The basis of the accusation is the classic one brought by the US Securities and Exchange Commission, namely the unauthorized sale of cryptocurrencies.

A few weeks ago, the SEC issued a new analysis of the structure that manages and supports the cryptocurrency XRP, which aims to make a difference in the banking market.

The announcement of the lawsuit, sponsored by Ripple Labs’ lawyers, caused the cryptocurrency to lose a lot of ground, especially at the beginning, but already for a couple of weeks, it seems that the value of XRP has settled on a rising line.

Ripple applied twice for an extension of time, which was anticipated by a letter filed with the prosecution for a new fact-finding session.

The SEC had also received a formal request from the blockchain company for an agreement between the parties so that the time frame would not be too long.

It seems that the SEC’s tone has once again started to become firm and not questionable. Ripple has therefore appealed to the Court.

Ripple’s proposed cryptocurrency law

The focus of Ripple’s strategy is to seek a connection between public and private finance. This is while waiting for a suitable regulation to foster its development.

The question of cryptocurrencies and their democratic capacity to bring innovation is still a topic that has not been fully resolved.

The CEO of Ripple, Brad Garlinghouse, said.

“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”.

What is lacking is an informative strand that is embraced by policy in order for the legal framework for digital assets to take a different and actionable form within financial policies.

Not all public policies are devoted to the experimentation or acceptance of digital currencies as a possibility of investment or return in the national economy.

A law must therefore be made to promote and protect the characteristics and possibilities of the decentralized world.

Susan Friedman, head of public policy at Ripple, said:

“Developing an effective policy framework for cryptocurrencies will only be possible if there is clear communication and collaboration between private and public actors. That is the reason why we have proactively discussed the issue on a bipartisan basis with regulators and members of Congress,” said Susan Friedman, Head of Public Policy at Ripple. “These conversations have helped shape our perspective on the type of regulatory clarity the industry and broader ecosystem need from regulators, as well as the type of requirements regulators should demand from the industry”.

XRP
New cryptocurrency bill proposed by Ripple

New legislative initiatives

The Ripple issue is reminiscent of many other realities surrounding the unlawful execution of crypto investments.

The SEC itself continues to obstruct even internal communication plans that could lead to real regulation, albeit in part. 

There is, however, one bill that puts the discussion back on a level playing field. It is the Eliminate Barriers to Innovation Act.

This proposal envisages the creation of two different dialogue groups appointed by the SEC and the CFTC, as well as having the support of private and public companies. The cryptocurrency issue would be addressed in the direct way in which these differentiated assets are managed.

According to Ripple, working within new financial frameworks that partially regulate the management of crypto-related securities would be an important first step.

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