Ripple Advocates for Level Playing Field Between crypto and Traditional Finance
BERLIN – Ripple Labs is urging regulators to apply consistent standards to cryptocurrency firms and traditional financial institutions (TradFi), arguing that disparate treatment stifles innovation and hinders teh growth of the digital asset sector. The call for regulatory parity comes as scrutiny of the crypto industry intensifies globally, with lawmakers grappling with how to oversee the rapidly evolving landscape.
this push for equal regulation isn’t merely a matter of fairness for crypto companies; it directly impacts the potential for broader adoption of blockchain technology and the integration of digital assets into the mainstream financial system. Uneven rules create uncertainty, raise compliance costs for crypto businesses, and possibly drive innovation to jurisdictions with more favorable regulatory environments. Ripple believes a unified approach will foster responsible advancement and protect consumers while unlocking the benefits of both crypto and TradFi.
Ripple specifically highlights the need for clarity regarding capital requirements, licensing frameworks, and reporting obligations, suggesting these should be aligned irrespective of whether a firm operates in the traditional or digital space. The company contends that applying different standards based solely on the underlying technology is discriminatory and ultimately counterproductive.
The company’s advocacy aligns with a growing sentiment within the crypto industry that regulatory frameworks should be technology-neutral. Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) over XRP, its native cryptocurrency, has further fueled its commitment to advocating for clear and consistent regulations. A partial victory in the SEC case in July 2023 established that XRP is not inherently a security, but the legal proceedings continue.
Currently, the price of XRP is 169.00 EUR, as of today.
Ripple is actively engaging with policymakers and regulators worldwide to promote its vision of a harmonized regulatory landscape. The company believes that a level playing field will ultimately benefit both the crypto industry and the broader financial ecosystem, fostering competition, innovation, and consumer protection.
