Ripple Labs’ Chief Legal Officer, Stuart Alderoty, has suggested that the United States should look to countries like Singapore for inspiration in creating clear and concise regulatory frameworks for the digital asset sector. Alderoty believes that the US is lagging behind in terms of rational regulations and is prioritizing politics over sound policies. In contrast, regions like Singapore, the UK, Europe, and Dubai are fostering crypto innovation with their supportive regulatory environments.
Alderoty’s comments come after Ripple recently obtained a Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS), allowing them to provide digital payment token services in the country. Coinbase also received the same license around the same time. The fact that many crypto-based entities are seeking licenses outside of the US demonstrates their frustration with American regulators such as the SEC and CFTC, who are taking measures to impede their operations through lawsuits and crackdowns.
Singapore has become known for its accommodating approach towards crypto companies and has gained global recognition for its pioneering crypto regulation efforts. It has positioned itself as an ideal hub for businesses and financial institutions to fully leverage the potential of digital assets in various use cases, including cross-border payments, crypto liquidity, and Central Bank Digital Currencies (CBDCs).
In conclusion, Alderoty’s advice to the US is to learn from countries like Singapore that have successfully implemented clear regulatory frameworks for the digital asset sector. By doing so, the US can foster innovation and attract crypto businesses instead of driving them away with overly burdensome regulations and legal actions.
Hot Take: The US Should Learn from Singapore’s Crypto Regulatory Framework
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