Regulation in the crypto industry is vital as it can help a lot with the mass adoption of digital assets. This has been one of the main goals that the crypto industry has and more steps have been taken in this direction.
Ripple reveals system for regulating crypto industry
The online publication the Daily Hodl noted that Ripple is proposing various measures for regulating the cryptocurrency industry in the US.
Ripple recently said that it hopes for a regulatory framework that does the following:
“encourages the unleashed potential of cryptocurrency and blockchain technologies, while also establishing important consumer and market protections.”
Ripple also says it supports innovation sandboxes which offer a conducive regulatory environment necessary to spur innovation.
“The current uncertainty in the US regulatory landscape discourages innovation and could cause a ‘brain drain’ in the cryptocurrency and blockchain space.”
The firm continued and said that in order to incentivize innovation and inform the development of a clear and consistent regulatory framework for cryptocurrencies, “innovation sandboxes should be encouraged.”
Ripple said that developers in the crypto space should be protected from liabilities or penalties and this should happen under safe harbor provisions for a certain period.
“As proposed by SEC [U.S. Securities and Exchange Commission] Commissioner Hester M. Peirce, US financial regulators should consider the creation of a ‘safe harbor’ regime under which network developers, under certain conditions and for a limited time, would be exempt from the registration provisions of federal securities laws.”
It’s been also revealed according to the official notes that During this ‘safe harbor’ period developers would be allowed to launch their products and develop their networks. The notes also stated the following:
“Fraud, of course, would not be subject to any protections in the sandbox.”
Stay tuned for more interesting and exciting news from the crypto space.