Ripple offers a ‘Real Approach’ to cryptocurrency regulation.

American fintech company Ripple unveiled its blueprint for regulating the crypto industry. The document is intended to offer U.S. authorities an ‘immediate and pragmatic’ path to establishing a regulatory framework.

“Cryptocurrency and blockchain technology require a clear regulatory and licensing framework designed to address the sector’s specific problems. All measures proposed within this framework are aimed at providing legal clarity for the industry, markets and consumers in a way that regulation through enforcement actions would be simply impossible,” said Ripple CEO Brad Garlinghouse.

In the document titled “A Real Approach to Cryptocurrency Regulation,” the company highlighted three core principles.

First, Ripple argues that any legislative proposals should rest on collaboration between government and business.

“Developing an effective policy framework for cryptocurrencies will only be possible with clear interaction and cooperation between private and public actors. Therefore, we have actively discussed this issue on a bipartisan basis with regulators and members of Congress,” said Suzanne Friedman, head of the company’s policy division.

Second, the firm believes that for crypto regulation one can adapt existing financial-sector law to cryptocurrencies.

“We believe that this framework, adapted to accommodate some features unique to cryptocurrencies, can provide the clarity sought by innovators and the market protections consumers deserve,” the document states.

Its authors named two statutes aimed at this goal: the Securities Clarity Act and the Digital Commodity Exchange Act.

Third, the company argues that to develop a regulatory framework for finance regulators should back the creation of a crypto “sandbox” regime. This would allow projects to launch products and develop networks during a generous grace period without the need to comply with federal securities laws, Ripple emphasized.

In October, Representative Patrick McHenry introduced a bill on regulatory holidays for crypto projects. His initiative mirrors a similar proposal from the industry-friendly commissioner of the U.S. SEC, Hester Peirce.

In December 2020, the regulator filed a lawsuit against Ripple, accusing the company of selling unregistered securities in the form of XRP tokens worth $1.3 billion. As of writing, the proceedings in the case have not yet concluded.

Earlier in November, the world’s largest bitcoin exchange Binance published its principles for regulating the crypto industry.