Regulation
Executive makes latest comment on tensions with US SEC
Ripple Labs, a blockchain payments company, faces significant regulatory hurdles in the United States. Cassie Craddock, the 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 views European regulatory advances as a beacon of progress.
Ripple CEO criticizes US crypto regulations
The tension between Ripple (XRP) and the SEC affects its operations. The ongoing legal disputes underscore the complex regulatory environment in the United States 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 Aldérotyhighlighted the SEC’s recent legal setback, which involved rescinding a 2020 rule regarding proxy voting advisory firms. This rule, which was never implemented, would have imposed specific conditions on companies providing voting advice to shareholders. Alderoty’s comments tie this incident to broader regulatory compliance issues and enforcement challenges facing companies under the SEC’s jurisdiction.
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EU moves forward with clear crypto guidelines
Unlike in the United States, Ripple welcomed the introduction of regulation to crypto-asset markets (Mica) in the European Union. This framework, which came into effect in mid-2023, aims to provide clear guidelines for the cryptocurrency sector. Craddock expressed optimism about the MiCA, emphasizing that it provides much-needed clarity for market participants. Although some ambiguities remain, the general sentiment among Ripple executives is optimistic regarding 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.
Read also: Hong Kong securities regulator flags three cryptocurrency firms for fraud
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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, etc. for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
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