Ripple participates in feedback on the cryptocurrency draft law in the United States, warning of the risks of ambiguity and excessive legal power.

The company emphasizes the need to clearly delineate the regulatory scope between the SEC and CFTC, while proposing legislation to protect long-standing Tokens operating on decentralized networks from inappropriate securities laws.

MAIN CONTENT

  • Ripple warns that the draft law increases ambiguity and disputes over regulatory authority between the SEC and CFTC.

  • Proposal to exclude Tokens operating on open networks for over 5 years from securities laws.

  • Recommendation to establish synchronized federal regulations to avoid legal conflicts that hinder innovation.

How has Ripple engaged in feedback regarding the U.S. cryptocurrency market structure draft law?

Ripple, with nearly a decade of experience and a complex litigation process with the SEC, has submitted detailed feedback to the U.S. Senate Banking Committee regarding the Crypto Market Structure Bill draft issued in July this year.

This feedback reflects Ripple's prestigious position in policy discussions, emphasizing the company’s role based on practical lessons to promote a more suitable legal framework for the cryptocurrency industry.

"With extensive experience in the field and the legal battle with the SEC, Ripple is committed to providing valuable insights for the law-making process to protect investor rights and promote innovation."

Stuart Alderoty, Chief Legal Officer Ripple, 2024

Why does Ripple warn that the draft law could cause ambiguity and excessive legal power?

Ripple argues that the current draft law is likely to cause confusion due to the overlapping authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission (SEC and CFTC).

The company particularly opposes the concept of "ancillary assets," as it poses a risk of unnecessary regulation over major Tokens like ETH, SOL, and XRP, even though their transactions do not resemble traditional securities. Ripple suggests following the trend of the CLARITY Act, reflecting the true decentralization of the current network.

What does Ripple propose regarding Tokens operating on open networks for 5 years or more?

Ripple believes that Tokens that have continuously operated on an open platform without centralized control for over 5 years should be excluded from the scope of securities law to ensure stability and sustainable development.

They propose that the U.S. Congress clearly recognize the limitations of applying the Howey Test to digital assets to prevent regulatory agencies from abusing and arbitrarily expanding their authority in the future.

Why does Ripple propose a unified federal law and prioritize a centralized legal framework?

Ripple emphasizes the creation of federal law to end the overlapping state laws that cause disruption, especially in issues like Token classification, stablecoin issuance, custody standards, and market structure.

A synchronized legal system will help foster a creative environment and minimize legal risks, avoiding situations where businesses face various conflicting regulations that hinder operations and innovation in the cryptocurrency sector.

How has Ripple been recognized in the cryptocurrency discussion in Washington?

Stuart Alderoty expresses gratitude to the U.S. Congress for allowing Ripple to voice its opinions, affirming that the company’s experience helps clarify and refine this important cryptocurrency draft law.

This interest demonstrates Ripple's growing role in cryptocurrency policy in the United States, opening up the possibility for deeper collaboration with lawmakers in the future to build appropriate regulations.

"Ripple's involvement in this process is clear evidence of the importance of the cryptocurrency industry and the potential for pioneering companies to contribute to an effective legal framework."

Expert community feedback, 2024

Frequently Asked Questions

What are the controversial points in the new cryptocurrency draft law in the United States?

The draft could create confusion over the division of powers between the SEC and CFTC, while also applying excessive regulation to certain Tokens.

Why does Ripple propose that Tokens operating for 5 years should be excluded from securities laws?

Long-standing Tokens on decentralized networks are transparent and stable, making them unsuitable for traditional securities laws.

What is the CLARITY Act in Ripple's proposal?

The CLARITY Act is a bill proposed by Ripple to better define the regulatory authority over decentralized assets.

What does Ripple want a federal law to prioritize?

Ripple hopes for federal law to avoid conflicts of state law, creating a uniform legal environment and supporting innovation.

How does Ripple's experience benefit cryptocurrency legislation?

Experience in facing litigation helps Ripple understand legal challenges, contributing to building robust and balanced laws.

Source: https://tintucbitcoin.com/xrp-ethereum-solana-nguy-co-dieu-tiet/

Thank you for reading this article!

Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!