Ripple warns: Crypto law could classify digital assets in the long term as securities-urgent appeal for five years of transition period

<P> <strong> Ripple warns: Crypto law could classify digital assets in the long term as securities-urgent appeal for five years of transition period </strong> </p>

ripple warns of potential risks in crypto law

ripple, a leading company in the field of blockchain technology and digital payments, expresses concerns about a new crypto law that is discussed by the Senate. Accordingly, this law could classify digital assets as securities indefinitely. This development could have far-reaching effects on the entire crypto industry.

possible consequences of the securities classification

The classification of digital assets as securities would result in a comprehensive regulation that could pose new challenges for both companies and investors. Ripple therefore calls for a clear framework that enables how to regulate the functioning and trade in cryptocurrencies without hindering the innovative strength of the industry.

urgent appeal for a "Safe Harbor" regulation

In order to reduce the uncertainties and create a stable legal framework, Ripple is pushing for the introduction of a five-year “Safe Harbor” regulation. This would enable companies to develop current innovations and new business models without being immediately subjected to the regulatory requirements of a securities law. The aim is to promote fair and clear use of digital assets and at the same time to protect the interests of investors.

FAZIT

Ripple's concerns underline the need to find a balanced approach to regulating cryptocurrencies. A clearly defined legal framework could not only minimize the risk of unforeseen legal consequences, but also support the growth of the crypto industry in a constantly developing digital age. It remains to be seen how the Senate reacts to Ripple's warnings and which specific measures to regulate digital assets are taken.