‘A Real Approach to Cryptocurrency Regulation’, is a proposal which reflects Ripple’s hopes for a regulatory framework that taps into the unleashed potential of cryptocurrency and blockchain technologies.

Brad Garlinghouse, CEO of Ripple expressed: “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.”

Ripple expressed:  Today, we were proud to release our vision for ‘A Real Approach to Cryptocurrency Regulation’, a framework designed to offer an immediate and pragmatic approach to cryptocurrency and digital asset regulation in the United States.

We believe the best public policy outcomes can be achieved by public-private collaboration, adapting existing regulatory frameworks and fostering crypto innovation sandboxes.

Ripple believes that our proposal will ensure the U.S. succeeds in nurturing crypto innovation within its borders while also maintaining the strong consumer and investor protections it’s known for.

Susan Friedman, Head of Public Policy at Ripple, expressed, “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.  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.”

The proposal opined that public-private collaboration will be at the core of any legislative proposals.  Any legislation or policy framework which focuses on regulating cryptocurrencies should be promoting an active dialogue between regulators and market participants.

Public-private collaboration will eventually lead to more tailored and effective policy outcome for the industry and consumers alike.

Ripple points to how:  The bill — which requires the establishment of a collaborative working group consisting of appointees from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) as well as representatives from fintech companies, financial firms, and small businesses — passed the House and remains pending in the Senate.

To eliminate barriers in innovation, it is important to foster open dialog between innovators and regulators.  To incentivize innovation Ripple feels that sandboxes should be fostered and encouraged.

Those who want to know more should read the proposal from the Ripple website.