The Monetary Authority of Singapore (MAS) recently awarded Ripple a fully-fledged digital payment tokens license, escalating the firm’s standing as a key player in the digital asset market. This license allows the company — which has been in the country since 2017 — to engage in the provision of digital payment token services.
Ripple’s CEO, Brad Garlinghouse warmly commended Singapore’s role in fintech growth, lauding its success in balancing innovation, consumer protection, and responsible growth. It is a strategic positioning of Singapore as a frontrunner in fostering innovation while establishing strong regulatory measures. Indeed, Ripple is one of only 14 entities granted this regulatory green light. This roster includes the local arms of significant crypto exchanges such as Coinbase, Independent Reserve and Blockchain.com.
On the other hand, we find the ongoing legal quagmire between the United States Securities and Exchange Commission (SEC) and Coinbase. The SEC had recently urged a federal judge to reject Coinbase’s motion to dismiss an ongoing lawsuit against them. The regulator posits that some of the listed cryptocurrencies on the platform count as investment contracts under the Howey Test, and hence, need SEC registration.
A fundamental claim echoed by the SEC is that Coinbase was fully aware of the securities nature of listed cryptocurrencies on its platforms. Consequently, the commission insists that the exchange should have involved the SEC. The SEC rubbished Coinbase’s defence, citing the “major questions doctrine,” arguing that the SEC has overriding jurisdiction over the crypto market unless otherwise directed by Congress.
The case has posed a significant challenge to the cryptocurrency community. While some deem the SEC’s definition of investment contracts overly broad, others apprehend that the ensuing ruling might cast an extensive regulatory net over crypto-assets. Many businesses and consumers alike wait in anticipation, aware that this lawsuit’s outcome will significantly influence the broader cryptocurrency ecosystem.
In conclusion, these interactions amplify the dual role of regulation in the crypto-verse. While Singapore shows us the enabling side of regulation, the SEC vs Coinbase case provides a cautionary tale of the potential hurdles. Yet, both ultimately illustrate the urgent necessity for clear and comprehensive cryptocurrency regulation.
Source: Cointelegraph
