Ripple Labs may be combating the US Securities Exchange Commission (SEC) in the US, but it’s well on its way to making a significant difference in the regulatory framework of cryptocurrencies in the UK, or at least it hopes so.
Ripple has worked on a new whitepaper which should offer the UK’s Financial Markets and Services Bill some further guidance if such is sought from the private sector.
The UK introduced the bill back in July and Ripple, among others, has tried to steer the process by issuing public recommendations and motivating them with evidence and data.
Ripple wants to see a clear regulatory framework which distinguishes between the different types of crypto asset, a recommendation that sounds painfully familiar given that SEC is chasing Ripple over an alleged unauthorized sale of securities.
Ripple suggests that whatever the final form of the bill ends up being, it should nevertheless outline different types of assets. Crypto companies should also get “different treatment” defined by the level of interconnection to the rest of the economy, Ripple argues.
The biggest challenge ahead of any attempt to regulate cryptocurrencies in individual jurisdiction is to settle their status.
If they are securities, then they should be treated as such. However, regulators such as SEC have been hesitant and have preferred to stick with an ambiguous definition that does not help private companies do much.
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