In the lack of clear cryptocurrency legislation in the United States, Ripple’s Head of Public Policy, Susan Friedman, advises the country to take cues from the regulatory approaches of the EU and the United Kingdom. On April 21, 2023, she cautioned that the lack of such restrictions encouraged business offshore, hampered monitoring of unlawful and criminal operations. This, she pointed out, clearly contradicts critics’ intentions.
On April 20, 2023, Friedman commended the European Union’s progressive attitude to cryptocurrency regulation, contrasting it with the United States’ emphasis on enforcement over clarity. She emphasized her enthusiasm for Ripple’s expansion into the European market. Friedman questioned the SEC’s resource distribution in a tweet dated March 29, 2023, noting that more than half of its workforce is dedicated to exams and enforcement. She stated that the SEC’s emphasis on enforcement is harmful to markets and capital formation in the United States, and she urged Congress to scrutinize the SEC’s budget request.
The SEC’s emphasis on enforcement over clarity is harming rather than benefiting markets and hobbling capital formation in the United States. Let’s hope Congress examines this budget proposal critically rather than supporting the SEC’s ever-expanding bureaucracy.
Friedman commended the United Kingdom’s consultation on building a clear and proportionate legislative framework to support innovation on February 1, 2023. She hoped that the United States would take note of the UK’s approach. Friedman also emphasized the diversity of the crypto ecosystem during a Treasury Committee discussion at the House of Commons on November 14, 2022.
During her testimony at the House of Commons, Susan Friedman, Ripple’s Head of Public Policy, made several noteworthy comments:
- She emphasized the diversity of the crypto ecosystem, emphasizing that different coins, projects, and enterprises serve distinct goals. She emphasized that Ripple is a business-to-business organization that works with licensed financial institutions, and that it is critical not to generalize the entire industry or all coins with a single description.
- Friedman stressed that not all tokens are produced or intended to be used for investment objectives. While speculation is a component, the legal structure inside the crypto ecosystem should recognise and accommodate both consumer-facing and business-to-business models.
- She stated that Ripple’s existing operations in the UK do not demand FCA registration. However, as the company expands in the country, it intends to obtain the necessary licences and permits. She went on to say that Ripple’s mission is to use blockchain and cryptocurrency technology to increase the efficiency of cross-border money transactions.
- Friedman lauded the European Union’s MiCA regulation for resolving consumer protection concerns, and recommended that the UK may adopt certain MiCA components as best practices. While Ripple does not directly target consumers, she acknowledges the importance of consumers having access to information and disclosures from issuers in order to make informed investment decisions.
- She praised the FCA’s taxonomy for its complex regulatory approach, which categorises tokens based on their distinct goals and applications. According to Friedman, a regulatory framework should recognise the diverse motives for the creation of tokens and concentrate on regulating the associated businesses and dangers.