Fintech company Ripple has presented its own approach on how cryptocurrencies should be regulated amid an ongoing lawsuit with the US Securities and Exchange Commission (SEC) over XRP. The San Francisco-based company says public-private collaboration should be "at the core of any legislative proposals." This means that any regulatory framework focused on the cryptocurrency market should promote an "active dialogue between regulators and market participants," Ripple wrote.
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"We believe clear communication and collaboration between private and public actors will be key in developing an effective policy framework for cryptocurrencies," said Susan Friedman, Head of Public Policy at Ripple.
It is noteworthy that Ripple believes existing financial regulatory frameworks "can be utilized to regulate cryptocurrencies." For example, the fintech company claims that the existing federal commodity market regulatory framework for commodity futures and swaps "is suited to regulate digital commodity markets."
Ripple's vision on this matter is fundamentally different from the one recently revealed at Coinbase. According to the exchange, the market is suffering from uncertainty regarding which federal regulators should oversee particular cryptocurrencies.
The Delaware-based cryptocurrency exchange says that laws drafted in the 1930s to facilitate effective oversight of US financial markets "could not contemplate this technological revolution." Ripple hopes that its proposal will "ensure the US succeeds in nurturing crypto innovation within its borders."
Meanwhile, cryptocurrency exchange Binance also presented a list of the fundamental rights of cryptocurrency users, which could serve as a guideline for regulators to consider to develop a global legal framework in crypto markets. According to the company, user rights are meant to ensure safe access to new technologies, liquidity and secure platforms, as well as to "protect users without limiting growth and innovation."
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