Ripple has released a proposed regulatory framework for cryptocurrencies

Ripple, a real-time fund transfer system, has published a proposal for a regulatory framework for cryptocurrencies called "A Real Approach to Regulating Cryptocurrencies". CEO Brad Garlinghouse explained that the "policy framework proposed by his company is a three-pronged approach of what can be done now," noting that it is not the result of Ripple's "direct interactions with regulators and bipartisan policymakers" . The proposal is the company's "vision of how existing financial regulatory frameworks can be used to advance innovation and improve consumer and market protections," Ripple explained. The company explained that it believes that "the best public policy outcomes can be achieved through public-private collaboration, adapting existing regulatory frameworks and promoting cryptographic innovation sandboxes." These are three key recommendations outlined in the proposal.

"Ripple believes our proposal will ensure that the United States succeeds in cultivating crypto innovation within its borders, while maintaining the strong consumer and investor protections that it is known for," the company wrote. The United States Securities and Exchange Commission (SEC) has been criticized for taking an enforcement approach to cryptocurrency regulation. SEC Commissioner Hester Peirce criticized his agency in August for taking this approach to regulate the cryptocurrency industry after the SEC announced executive action against cryptocurrency exchange Poloniex. Many people have also asked the SEC for more clarity on cryptocurrency regulation, but to no avail. However, Ripple is not the only platform that has come up with a proposal for the regulation of cryptocurrencies. Coinbase for example has also proposed a cryptographic framework, with four key recommendations. CEO Brian Armstrong met with regulators to convince them that the United States should have only one federal regulator overseeing the crypto space. Currently, Coinbase said it has 53 regulators in the United States alone.