Regulation
Executive makes final comment on tension with US SEC
Ripple Labs, a blockchain-based 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 Slams US Crypto Regulations
The tension between Ripple (XRP) and the SEC influences its operations. The ongoing legal disputes underscore the complex U.S. regulatory environment for cryptocurrencies.
Brad GarlinghouseCEO of Ripple, has expressed frustration with the lack of clear regulatory guidelines, which he believes stifles innovation in the industry. This ongoing struggle highlights the company’s difficulty navigating American regulatory waters, a stark contrast to its experiences in European markets.
Additionally, Ripple’s Chief Legal Officer, Stuart Alderoty, pointed to the SEC’s recent legal setback, which resulted in the rescission of a 2020 rule regarding proxy advisory firms. This rule, which was never implemented, would have imposed specific conditions on companies that provided voting advice to shareholders. Alderoty’s comments link 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 guidelines on encryption
Unlike the US, Ripple has welcomed the introduction of the Markets in Crypto-Asset Regulation (Not) in the European Union. This framework, which initially came into effect 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 ambiguity remains, the general sentiment among Ripple executives is optimistic about the European regulatory landscape.
However, Marina Markezic, leader of the European Crypto Initiative, shared concerns regarding the clarification of MiCA provisions. The divergent approaches of the US and the EU towards cryptocurrency regulation are becoming increasingly evident. While the EU moves forward with final regulations that encourage industry growth and innovation, the United States remains entangled in legal and regulatory complexities.
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