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.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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