Ripple, the company whose executives have often criticized the U.s.a.' seeming lack of regulatory clarity on the cryptocurrency industry, has outlined its own "pragmatic" framework.

In a Tuesday post on its website, Ripple released its vision for a regulatory framework aimed at advancing innovation while protecting investors in the United States. According to the firm, regulators need to be encouraged to promote innovation sandboxes, some of the existing frameworks in the U.Southward. can be applied to cryptocurrencies and there should exist "an active dialogue between regulators and market participants."

Ripple advocated for the proposed measures as a way to provide regulatory clarity to all in the crypto space "in a way that an ad hoc, regulation-by-enforcement approach simply cannot." According to CEO Brad Garlinghouse, the proposal was "designed to address and remedy the specific challenges" to the manufacture.

In regard to regulatory sandboxes, the visitor said the "safe harbor" proposed by SEC Commissioner Hester Peirce under which network developers would take a grace period to build without existence subject to certain federal securities laws would exist necessary to "incentivize innovation." Ripple acknowledged such a measure may non accost "many mature projects" in the space.

The company also supported legislation applying to the digital nugget space currently being considered by U.Due south. lawmakers. The business firm said the Security Clarity Act, or SCA — which would change the legal status of whatever nugget sold as an "investment contract" to an "investment contract asset" — would help to provide regulatory clarity for cryptocurrencies.

In addition, the Digital Commodity Exchange Deed would supplement the SCA when securities laws would not apply to certain token projects, essentially making them more similar bolt from a regulatory standpoint. The proposed legislation could give the Commodity Futures Trading Committee the authority to oversee digital asset exchanges handling such commodities.

For addressing communication between the public and private sector, Ripple supported the Eliminate Barriers to Innovation Human action introduced by Representative Patrick McHenry in April. The bill aims to clarify the office of the SEC and CFTC in the country's efforts to regulate crypto but would besides crave the two agencies to constitute a working group focused on digital assets.

"Developing an constructive policy framework for cryptocurrencies will but be possible if there is clear communication and collaboration between private and public actors," said Ripple's head of public policy Susan Friedman. "That is the reason why we have proactively discussed the result on a bipartisan footing with regulators and members of Congress [...] These conversations have helped shape our perspective on the type of regulatory clarity the industry and broader ecosystem need from regulators, as well as the type of requirements regulators should demand from the industry."

Related: US isn't prepared to regulate new industries like crypto, says Ripple CTO

Ripple co-founder Chris Larsen, Garlinghouse, and CTO David Schwartz have all voiced concerns well-nigh the "patchwork" of regulations under which crypto firms are forced to navigate to operate in the Usa. Though the company's current headquarters are in San Francisco, the executives have previously hinted they were exploring leaving the U.S. behind for a "more friendly jurisdiction."