The evolution of cryptocurrencies from speculative investment to a new asset class has caused governments all around the world to look for ways to regulate them. Steps are being taken to make crypto a safer investment option without penalising the crypto firms or running them to the ground.
The US, however, tends to address the situation differently than other nations. The SEC, which is in charge of regulating crypto and making investments, is lagging far behind the rest of the world. The SEC appears to have been involved in lawsuits with key crypto companies.
Ripple CEO Praises Countries for Their Regulations
Brad Garlinghouse, CEO of Ripple has mentioned in a recent tweet that the global regulatory developments are energizing with an exception of what is happening in the USA.
Some of the nations he named in his tweet include Dubai, which recently announced an extensive new set of tech-neutral regulations for participants in the cryptocurrency sector. He brought up Australia, where the Treasury intends to improve consumer safety by changing licencing and custody requirements for cryptocurrencies. Before modifying the rules, they recently released a token mapping survey and are looking for comments from the public.
Moreover, it shows the UK government’s goal to provide a fair, transparent environment that enables companies to innovate while preserving their financial stability. Additionally, South Korea has created guidelines describing the distinctions between security tokens and payment tokens as well as how each should be handled differently.
Restrictive behaviour of the SEC
Brad Garlinghouse mentioned the need for such leadership in the USA as well. The USA has a more restrictive approach towards crypto companies. The U.S. Securities and Exchange Commission (SEC) charged that the cryptocurrency exchange Kraken offered unregistered securities, and on Thursday, the SEC announced that it had reached a $30 million settlement with Kraken and that it would “immediately” stop offering its crypto staking-as-a-service platform to U.S. customers.
In a recent press release, Gary Gensler said that “Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws.” This is indicative of the SEC’s stance on regulations.
The lawsuit between SEC and Ripple is also an example of the stringent regulations of the SEC. where the SEC contends that XRP should be classified as a security, subject to federal securities laws.
Community reaction
The crypto-sphere has reacted favourably to Garlinghouse’s tweet. They have stated that XRP winning the lawsuit is their best chance of better restrictions. Another person brought up the idea that the SEC makes one stride forward before making two steps back. They have also stated that they hope for some clarification regarding American regulation.
Source: https://coinpedia.org/news/ripple-ceo-hails-progress-in-crypto-regulation-worldwide-points-out-usas-flaws/