It is available at the enterprise blockchain company Ripple I responded Requests for information from the US Senate Committee on Banks, Housing and Urban Affairs, led by Sen. Tim Scott, regarding the digital asset market structure.
Ripple claims to support efforts to establish a clear regulatory framework for digital assets.
However, the company has been criticising it recently. Release draft Market Structure Bills to create more ambiguity instead of bringing the necessary regulatory clarity.
The company notes that the bill gives the SEC too much power, as it allows the majority of tokens to be regulated as traditional securities. This includes tokens that do not normally fall under the agency’s domain.
Ripple is seeking additional revisions to address these concerns.
“Permanent” Second Monitoring
Ripple also argues that the definition of “additive assets” proposed in the law allows various tokens, including XRP, to be permanently imposed on SEC surveillance, simply because current or future transactions were associated with investment contracts that were previously on initial sale.
The recently proposed draft does not include any mechanisms that can put an end to SEC monitoring of such tokens. Such uncertainty can inhibit development.
Grandfather exemption
Ripple also advocates exclude tokens that have been widely traded for a long time from securities regulations.
“When a robust and liquid market is formed, it should not be disrupted by retrospective or continuous government intervention,” Ripple said.
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