Ripple, a popular crypto solutions provider and blockchain-based digital payment network has publicized a regulatory white paper with suggestions for U.K. legislators and regulators looking to govern the industry.
The document stated that the United Kingdom has constantly been a dedicated host of one of the most distinctive financial hubs in the world. And as this foundation has been established and finely developed, the nation can build upon it to effectively take full advantage of the upcoming wave of global financial evolution by developing an innovative digital asset sector.
Ripple’s Defense Against SEC Mitigate Its Regulatory White Paper
Ripple has recently been sued over its native token, XRP, by the U.S Securities and Exchange Commission (SEC), effectively issuing a dent to its regulatory white paper proposal.
The crypto company is combating regulators in other foreign countries as the SEC sues the company for allegedly delivering unregistered securities, violating U.S securities regulations.
The company’s pronouncements of its regulatory white paper to the media were also predictably much more pessimistic than the approach used with regulatory authorities.
Ripple’s Chair of Public Policy, Susan Friedman, stated to the block that the need for a proper structure for the regulatory framework is crucial because this will facilitate Ripple’s growth and help the crypto company’s business to expand and evolve further.
Although such candor is stimulating, current incidents have demonstrated that the most reasonable conclusions for enterprises that deal in digital assets, such as Ripple, rarely correspond to the most outstanding results for the sector.
The issue with FTX CEO Sam Bankman-Fried is a clear representation. SBF had recently published his suggestions for policies and regulations on digital assets; however, weeks after, the SEC exposed his company for illicitly wagering customer deposits to salvage his subsidiary company, Alameda Research.
Hence, the fact that Ripple currently battles regulators due to its SEC crisis will not help its goals for its regulatory white paper.
Ripple’s White Paper Proposals
Three essential proposals are made in the report for the U.K. for it to maintain its objectives as a global financial pivot.
- A comprehensive, sophisticated regulatory framework that handles the various participants in the “crypto” asset field following their risk characteristics.
- A boost in regulatory reserves and cooperation to ensure the public sector reacts to developments in the industry effectively and promptly.
- Adequate public schooling to increase lawmakers and the public’s comprehension of the advantages and difficulties of the crypto industry and its growth facilitates a stabilized discourse.
The white paper also differentiates the U.K.’s regulatory endeavors from other nations and suggests the best practices to adopt.
- Provide a thorough, risk-based approach for governing digital assets.
- Establish clear regulatory boundaries by differentiating various types of digital assets depending on their functions
- Appoint proper regulatory agencies with adequate resources.
