Regulation
Executive makes final comment on tensions with US SEC
Ripple Labs, a blockchain payments company, is facing significant regulatory hurdles in the United States. Cassie Craddockthe company’s managing director for the UK and Europe, recently highlighted the challenges of the US market. As the company battles with the Securities and Exchange Commission (SEC) over its operations, Ripple sees European regulatory advances as a beacon of progress.
Ripple CEO criticizes US cryptocurrency regulations
The tension between Ripple (XRP) and the SEC affects its operations. Ongoing legal disputes underscore the United States’ complex regulatory environment for cryptocurrencies.
Brad GarlinghouseRipple CEO, has expressed frustration at the lack of clear regulatory guidance, which he says is stifling innovation in the sector. This ongoing struggle highlights the company’s difficulty navigating U.S. regulatory waters, in stark contrast to its experiences in European markets.
Additionally, Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted the SEC’s recent legal setback, which involved rescinding a 2020 rule regarding proxy advisory firms. This rule, which has never been applied, would have imposed specific conditions on companies providing voting advice to shareholders. Alderoty’s comments connect this incident to broader regulatory compliance issues and enforcement challenges faced by companies under the SEC’s jurisdiction.
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EU moves forward with clear crypto guidelines
Unlike the United States, Ripple has welcomed the introduction of market regulation on crypto assets (Mica) in the European Union. The framework, which initially came into force in mid-2023, aims to provide clear guidelines for the cryptocurrency industry. Craddock expressed optimism about MiCA, noting that it provides much-needed clarity for market participants. While some ambiguities remain, the general sentiment among Ripple executives is optimistic about the European regulatory landscape.
However, Marina Markezic, head of the European Crypto Initiative, shared her concerns about clarifying the provisions of MiCA. The divergent approaches of the US and the EU to cryptocurrency regulation are becoming increasingly evident. While the EU is moving forward with definitive regulations that encourage industrial growth and innovation, the US continues to grapple with legal and regulatory complexities.
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