Ripple submitted an official response to the call of the Task group for cryptocurrency securities and stock exchanges (SEC) to a public contribution in terms of regulatory transparency in the cryptocurrency industry. The legal representatives of the payment company from Blockchain responded at the request of the Commission entitled “There must be a way out of here“Sugging an regulatory approach based on existing regulations and focused on clear and concise market guidelines.
RIPPLE rejects the “insured” Howey test in cryptographic matters
IN Reported letter On March 21, to the Commissioner of Sec and the head of the cryptual committee Hester Pierce, Ripple legal director, Stuart Alderoty together with the General General Councilor Samhoud and deputy legal advisor of Deborah McCrimmon, Deputy Legal Counsel, shared some recommendations regarding the provisions regarding the development of provisions regarding the digital resource industry.
First of all, Ripple stated that most of the digital assets went beyond the regulatory scope of SEC, because they do not qualify as securities in accordance with the Act on securities of 1933 and the Act on the exchange of securities from 1934. Representatives or common undertakings in these cases.
Alderots and colleagues imposed the influence of regulatory SEC on the cryptocurrency market without securities even in the presence of crimes, because there are appropriate management agencies in such cases. Rather, management suggests that SEC has adopted a similar approach to Memecoins, where it stated that these tokens are not qualified as securities and are beyond its jurisdiction.
As for the profitability of programs, Ripple called on a commission to clearly determine that automatic arrangements in which investors earn from public activities without permits, e.g. staking, cannot be classified as securities. This is due to the fact that, unlike conventional securities, there is no direct effort of any third party or a contractual contract to generate profits for investors.
On safe and sound ports, sand and iCO
The management of Ripple also expressed the company’s thoughts about the proposed safe and sound ports and sandbox, paying attention to the importance only after the US Congress ends the supervision over the delegate over the cryptocurrency industry. They admit, however, that the potential of these ideas was supported by innovation and preventing unnecessary enforcement activities in the digital assets.
Interestingly, Alderots and colleagues suggest that the initial coins’ offers can be appropriate items for SEC Secure Harbor, because there is a promise to build sales of exchange or blockchain-like the sale of tokens in already established networks. However, RIPPLE legal advisor reminds the Commission in determining clear regulations that can distinguish ICO matters from ICO.
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