Ripple CEO hails progress in crypto regulation worldwide, points out US mistakes
The evolution of cryptocurrencies from speculative investments to a new asset class has governments around the world looking for ways to regulate them. Steps are being taken to make crypto a safer investment option without penalizing the crypto companies or driving them to the ground.
However, the United States tends to address the situation differently than other nations. The SEC, which is responsible for regulating crypto and making investments, lags far behind the rest of the world. The SEC appears to have been involved in lawsuits with key crypto companies.
The Ripple boss praises the countries for their regulations
Brad Garlinghouse, CEO of Ripple has mentioned in a recent tweet that global regulatory developments are energizing with the exception of what is happening in the US.
Some of the nations he named in his tweet include Dubai, which recently announced a comprehensive new set of technology-neutral rules for participants in the cryptocurrency sector. He brought up Australia, where the Treasury intends to improve consumer safety by changing licensing and custody requirements for cryptocurrencies. Before changing the rules, they recently released a token mapping survey and are looking for comments from the public.
Moreover, it demonstrates the UK Government’s aim to provide a fair, transparent environment that enables companies to innovate while preserving their financial stability. In addition, South Korea has created guidelines that describe the differences between security tokens and payment tokens, as well as how each should be handled differently.
Restrictive conduct by the SEC
Brad Garlinghouse mentioned the need for such leadership in the United States as well. The US has a more restrictive approach to crypto companies. The US Securities and Exchange Commission (SEC) accused cryptocurrency exchange Kraken of offering unregistered securities, and on Thursday the SEC announced it had reached a $30 million settlement with Kraken and would “immediately” stop offering its crypto stake. -a service platform for American customers.
In a recent press release, Gary Gensler said that “Whether through staking-as-a-service, lending or other means, crypto-intermediaries, when offering investment contracts in exchange for investors’ tokens, must provide the proper disclosures and safeguards required by our securities laws .” This is an indication of the SEC’s attitude to regulations.
The lawsuit between the SEC and Ripple is also an example of the SEC’s strict regulations. where the SEC claims that XRP should be classified as a security, subject to federal securities laws.
The cryptosphere has reacted positively to Garlinghouse’s tweet. They have stated that XRP winning the lawsuit is their best chance for better restrictions. Another person brought up the idea that the SEC takes one step forward before taking two steps back. They have also stated that they hope for some clarification regarding US regulation.
