Preface
The content of this article is simultaneously published in the "Chain Flash" column.
Today's global financial ecosystem is in an era of rapid change, and blockchain technology and cryptocurrency are gradually becoming important forces in promoting financial innovation and efficiency. However, there may be significant differences in the attitudes and response strategies of different international organizations and national regulatory agencies towards these emerging technologies.
In the encryption industry, the case of Ripple Labs should be the encryption company that has been discussed for a while, and the biggest reason is the three-year love-hate entanglement with the SEC that is the most eye-catching. In addition, BIS also recently announced the establishment of the Cross-border Payment Interoperability and Extensibility (PIE) Working Group, in which Ripple will serve as a member of the group and cooperate with other organizations such as MasterCard and SWIFT.
We can observe from the above that there are significant differences in the attitudes of the U.S. Securities and Exchange Commission (SEC) and the Bank for International Settlements (BIS) towards Ripple.
The attitude of the U.S. Securities and Exchange Commission (SEC)
Litigation confrontation: There are new developments in the lawsuit between the SEC and Ripple Labs. The SEC is seeking an interlocutory appeal to express dissatisfaction with the previous judgment. This litigation process reveals the SEC's firm attitude towards regulatory enforcement and demonstrates its intention to ensure market transparency and fairness through legal means.
Pay attention to legal regulations: The SEC’s lawsuit shows its strict attitude towards the compliance issues of Ripple and XRP, emphasizing that the cryptocurrencies sold on the exchange may also be securities. This not only shows that the SEC takes the classification and regulatory issues of cryptocurrency seriously, but also reflects its deep commitment to protecting investors and maintaining market order.
Impact on the legal environment of the industry: The SEC’s appeal decisions may affect multiple pending litigation cases, showing that the SEC’s decisions have broad influence. Not only could this change the cryptocurrency industry’s legal risk assessment, it could also prompt other regulators to take a stricter stance on similar issues.
Bank for International Settlements (BIS) attitude
Active cooperation: BIS has established a cross-border payment interoperability and extensibility (PIE) working group, and has introduced Ripple Labs to work with other institutions to promote payment accessibility, extend operating hours, and strengthen cross-border payment functions. This cooperation not only promotes financial technology innovation, but also reflects BIS's active pursuit of global payment system integration and efficiency improvement.
Emphasis on blockchain technology: BIS shows its importance to blockchain in the financial payment industry by cooperating with Ripple, a blockchain digital payment network. This partnership reflects BIS’s openness to the application of emerging technologies within traditional financial structures and its recognition of the potential of blockchain technology to increase payment speeds and reduce costs.
Emphasis on public-private collaboration: BIS emphasizes that improving payment systems requires coordinated collaboration between the public and private sectors globally, meaning it recognizes the important role of private companies like Ripple in improving financial systems. This collaborative approach highlights BIS’s strategic vision to find and promote synergies between the public and private sectors in global financial governance to achieve shared financial goals and interests.
in conclusion
The attitudes of the SEC and BIS reflect the potentially different positions of national regulators and international organizations dealing with the same issue. The SEC focuses more on regulatory compliance and supervision, emphasizing legality and the importance of protecting investors. On the contrary, BIS’s attitude emphasizes collaboration and innovation, recognizing Ripple’s active role in advancing global financial goals.
This difference may stem from the different functions and goals of the two. SEC, as a national regulatory agency, must strictly enforce laws and protect market order; while BIS, as an international organization, may focus more on promoting international cooperation and innovation.
This difference also reminds blockchain and cryptocurrency companies that they need to fully understand and adapt to the regulatory environment and policy orientations of different jurisdictions when operating on a global scale.
References
SEC to seek appeal and stay in Ripple Labs court case
https://cointelegraph.com/news/sec-seek-interlocutory-appeal-ripple-case
Ripple joins BIS cross-border payments task force
https://cointelegraph.com/news/ripple-joins-bis-cross-border-payments-task-force
