Ripple executives often criticized the United States for seemingly lacking regulatory clarity on the cryptocurrency industry, and the company outlined its own “pragmatic” framework.

In a Tuesday post on its website, Ripple Released Its vision for a regulatory framework designed to promote innovation while protecting U.S. investors. According to the company, regulators need to be encouraged to promote the innovation sandbox. Some of the existing frameworks in the United States can be applied to cryptocurrencies, and there should be “an active dialogue between regulators and market participants.”

Ripple advocates the proposed measures as a way to provide regulatory clarity to everyone in the encryption field, “in a way that is simply impossible to do in a temporary, item-by-item approach.” According to CEO Brad Garlinghouse (Brad Garlinghouse), the proposal “is designed to address and resolve specific challenges facing the industry.”

Regarding the regulatory sandbox, the company stated that the “safe harbor” proposed by the SEC Commissioner Hester Peirce refers to Web developers will have a grace period Building without certain federal securities laws is necessary to “incentivize innovation.” Ripple admits that such measures may not be able to solve “many mature projects” in the field.

The company also supports legislation that applies to the field of digital assets currently being considered by U.S. legislators.The company stated that the Security Clarity Act (SCA) will Change the legal status of any asset Sold as an “investment contract” to an “investment contract asset”-will help provide regulatory clarity for cryptocurrencies.

In addition, when the securities law does not apply to certain token projects, the “Digital Commodity Exchange Law” will supplement SCA, essentially Make them more like commodities From a regulatory perspective. The proposed legislation could give the Commodity Futures Trading Commission the power to supervise digital asset exchanges dealing with such commodities.

In order to solve the communication problem between the public and private sectors, Ripple supports the “Removal of Barriers to Innovation Act” Introduction by representative Patrick McHenry In April. The bill aims to clarify the role of the SEC and CFTC in the country’s efforts to regulate cryptocurrencies, but also requires these two agencies to establish a working group focused on digital assets.

Susan Friedman, head of public policy at Ripple, said: “Only with clear communication and cooperation between private and public participants can we develop an effective policy framework for cryptocurrency.” Regulators and members of Congress actively discuss the reasons for this issue […] These conversations helped shape our views on the types of regulatory clarity that the industry and the broader ecosystem need from regulators, and the types of requirements that regulators should place on the industry. “

related: Ripple’s chief technology officer stated that the United States is not prepared to regulate emerging industries such as encryption

Ripple co-founders Chris Larsen, Garlinghouse, and CTO David Schwartz all expressed concern about the regulatory “patchwork” of crypto companies being forced to operate in the United States.Although the company’s current headquarters are in San Francisco, executives have previously hinted that they Exploring to leave the U.S. behind For “a more friendly jurisdiction”.