SNEAK PEEK
- Transparency in crypto invites both clarity and heightened regulatory scrutiny.
- Disclosure in decentralization raises questions about exemption and extent.
- Balancing decentralization with responsible conduct remains a central challenge.
The world of cryptocurrency is at a pivotal crossroads. Recently, Ripple’s attempt to build a transparent structure was used against it by the SEC. But could this controversial case lead to a more explicit regulatory landscape for cryptocurrency?
Once we’re in a sane regulatory environment, I 💯 agree. @bgarlinghouse & @Ripple implemented the cryptographic escrow and started publishing #XRP Reports every quarter, identifying #XRP sales. The SEC, however, used all of this “transparency” against Garlinghouse and Ripple.… https://t.co/NHQyMISMB0
— John E Deaton (@JohnEDeaton1) July 9, 2023
As per the report, John E Deaton, an outspoken voice in the crypto industry, brought forward some valid points in a recent discussion on Twitter. Specifically, he mentioned Ripple’s transparent approach and how the SEC interpreted it. To add more clarity, Ripple implemented a cryptographic escrow and started publishing quarterly reports outlining its XRP sales.
Despite this effort for transparency, Ripple and CEO Brad Garlinghouse found themselves under SEC scrutiny. However, the twist came when William Hinman, a former high-ranking official at the SEC, was quizzed about his knowledge regarding Ethereum’s token ownership.
Moreover, the discussion sparked by Deaton brought up a critical question: How does one maintain transparency in a decentralized environment? Gabriel Shapiro, an influential blockchain lawyer, suggested large token holders should disclose their identities and the percentage of the total supply they control.
This is a great topic for discussion. 👉How does this work in a decentralized environment?
🖐Who would be exempt from identification regardless of % of holdings?
🤑Should identification be limited to staff, contractors & direct family of the project, govt employees, contractors,…— BigAssAura👁 (@bigassaura) July 9, 2023
Nonetheless, it raises further queries: Who would be exempt from such rules? Would it extend to staff, contractors, direct families of the project, government employees, contractors, lobbyists, financial institutions, and advisors?
These inquiries underscore a critical challenge in a decentralized world. The answers could help shape the future regulatory landscape of cryptocurrencies. Significantly, it’s essential to keep in mind whether Bitcoin and its miners’ consolidation should also adhere to these requirements.
Indeed, the debate on transparency and regulatory obligations in the crypto world is far from over. The central question remains: How can we balance the ethos of decentralization with the necessity for responsible conduct and transparency? The ongoing discourse surrounding this topic suggests we are inching closer to finding the answer. Nevertheless, as with all things in the crypto universe, only time will tell.
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- Source: https://investorbites.com/crypto-regulation-in-paradox-as-ripples-transparency-becomes-secs-ammunition/
