Global payments firm Ripple is proposing various measures for regulating the cryptocurrency industry in the US.
Ripple says it hopes for a regulatory framework that “encourages the unleashed potential of cryptocurrency and blockchain technologies, while also establishing important consumer and market protections.”
The San Francisco-based company says it supports innovation sandboxes which offer a conducive regulatory environment necessary to spur innovation.
“The current uncertainty in the US 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.”
Ripple says developers in the crypto space should be protected from liabilities or penalties under safe harbor provisions for a certain period.
“As proposed by SEC [U.S. Securities and Exchange Commission] Commissioner Hester M. Peirce, US financial regulators should consider the creation of a ‘safe harbor’ regime under which network developers, under certain conditions and for a limited time, would be exempt from the registration provisions of federal securities laws.
During this ‘safe harbor’ period developers would be allowed to launch their products and develop their networks.
Fraud, of course, would not be subject to any protections in the sandbox.”
According to Ripple, its proposed measures could help maintain the overall worldwide competitiveness of the US capital markets.
“Ripple believes 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.”Check Price Action
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/VAlex/Tun_Thanakorn