Ripple Lab, the blockchain firm, is dealing with legal complications in the United States launched by the Securities and Exchange Commission (SEC). Its long battle with the commission has left it with a partial win in a district court and still an unclear future for XRP. However, in a recent report, Ripple sheds light on the crucial nexus between innovation and regulatory clarity.
Ripple with crypto leaders
The report highlights a need for a compliance-first approach which will eventually drive the decentralized finance (DeFi) industry forward. It mentioned that Ripple with TRM Labs, hosted a public-private roundtable at the Elevandi Insights Forum during the Singapore Fintech Festival. This was done in order to delve into the regulatory complications faced globally and how it is shaping the future of DeFi.
According to the report, the DeFi industry is expected to reach $601 billion by 2032. In this journey, the key challenge the industry faces is the need for a universally accepted definition.
It is important to note that major regulatory bodies have recognized a crucial relationship between innovation and regulatory clarity. The list includes top watchdogs like the International Organization of Securities Commissions (IOSCO) and the Monetary Authority of Singapore (MAS).
Ripple pointed out that even jurisdictions lacking clear crypto regulations, like the US, are making strides. The approach is evident in the Commodity Futures Trading Commission’s (CFTC) DeFi report. It depicts the pivotal role of data in understanding risks, protecting consumers and ensuring financial stability.
What does this meaning imply?
The effort to organize a large-scale regulation focus conference with big players in the crypto industry suggests that Ripple seeks expansion and clarity. The blockchain firm is facing legal challenges from the US SEC over the nature of its native crypto XRP.
The commission is constantly trying to assert its authority over the digital assets industry, However, major crypto exchanges and organisation have raised their voice against the unclear trading rules provided by the US SEC. However, the top watchdog had received accusations of regulations by enforcement charges from the industry.
Decisions taken by the SEC have definitely affected the crypto market growth. Ripple’s native crypto, XRP growth saw major hurdles just due to regulatory challenges. XRP price had dropped by over 15% on the year to date (YTD) basis.
However, XRP price is up by 4% in the last 24 hours. It is trading at an average price of $0.52, at the press time.
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