A stepwise proposal, in relation to the Government’s initiative of introducing crypto regulation, has been prepared by Ripple Labs which is based on Ripple’s own perspective as to what approach should be employed by the US Government for the achievement of the desired objective.
Brad Garlinghouse, who is the CEO of Ripple Labs, has submitted a proposal for the US Government on 16th November 2021. This proposal, which is a stepwise proposal, has been based on the very perspective of Ripple. The company has described its vision of crypto regulation in the proposal which provides a way forward for better regulation of the crypto industry. Ripple believes that even the existing regulatory roadmap can be utilized for encouraging innovation and ensuring consumers protection.
Garlinghouse commented that his company would like to take the honor of presenting a proposal that is efficient and doable in the present circumstances. The proposal will help the US Government and regulatory authorities of the US inefficiently regulate the digital market without jeopardizing its advancement.
He further commented that the best way forward is to arrive at a consensus by establishing cooperation between the public and private sectors. He said that the proposal of Ripple will enable the US Government to let the innovation creping within the national digital asset industry. At the same time, regulators’ interests will be safeguarded as there will be enough protection for local investors as well as consumers.
Garlinghouse described in detail that the proposal is a three-step proposal that comprehensively details what needs to be done. Each recommendation contained in the proposal is crystal clear and does not involve any ambiguities.
He stated that the Government must understand that the US digital industry is the fastest growing industry in the country. The need to have regulations on an urgent basis should therefore be the top priority of the US Government. Garlinghouse insisted that the only way forward in the right direction is to develop public-private cooperation.
US regulators though want to adopt crypto regulations but they are finding it difficult to create them. Particularly because they lack the expertise in crypto and therefore they think that strict regulation is the key. However, tightening the regulatory grip is also not favorable for the crypto industry and the people involved with it. So the regulators want to create a balance and it can only be done if stakeholders are taken on board.
On the other hand, Ripple’s proposal directly involves the Securities & Exchange Commission of the US, which is the regulator of crypto. However, between the two, the business ties are not healthy. In fact, both have been contesting litigation against each other in a court of law. It would therefore take more than a simple attempt for SEC to even consider the proposal submitted by Ripple.