• Pennsylvania lawmaker, Rep. Glenn Thompson, is proposing to introduce a new crypto bill in light of the positive outcome in the SEC’s Ripple lawsuit.
• The proposed legislation seeks to clarify when crypto assets should be regulated as securities or commodities and give the CFTC authority over certain tokens.
• The ruling by U.S. District Judge Analisa Torres that XRP tokens are sold as securities only when made directly to institutional investors pursuant to written contracts, provides clarity on how crypto assets should be treated going forward.
Pennsylvania Lawmaker Proposing New Crypto Bill
A Pennsylvania Republican lawmaker is pushing for a new crypto legislation after last week’s verdict in the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple which ruled that Ripple did not violate securities law with the open market sale of XRP tokens. Representative Glenn Thompson is optimistic about getting support for his proposed bill which seeks to clarify when crypto assets should be regulated as securities or commodities and give the Commodity Futures Trading Commission (CFTC) power over certain tokens.
Positive Outcome In SEC vs Ripple Lawsuit
The ruling by U.S. District Judge Analisa Torres counters the SEC’s argument that most tokens offered to retail investors are unregistered securities and states that XRP tokens are sold as securities only when made directly to institutional investors pursuant to written contracts, but not when offered on exchanges, providing clarity on how crypto assets should be treated going forward.
Thompson Confident Of Passng Legislation
Represntative Thompson believes this decision gives enough leeway for his proposed legislature to get passed and plans to formally introduce it along North Carolina representative Patrick McHenry this week.. He hopes this move will provide certainty and clarity in regards digital asset regulations moving forward stating: “The Ripple decision has highlighted what we’ve been saying all along — there’s confusion about how digital assets are treated under the securities laws, and it’s up to Congress to step in and provide both certainty and clarity.”
Proposal To Give CFTC Authority Over Certain Tokens
The newly proposed bill seeks authority for regulating crypto assets such as Bitcoin, Ethereum, Litecoin etc., as either a security or commodity depending on its nature; also giving the Commodity Futures Trading Commission (CFTC) oversight of these digital assets based on their features/characteristics if they fall within their jurisdiction . It would also seek clarification regarding regulations surrounding Initial Coin Offerings (ICOs).
In conclusion, Represntative Glenn Thompson’s proposal could bring much needed regulatory certainty with regards cryptocurrencies if passed into law; potentially paving the way for greater adoption of blockchain technology across sectors from finance through education .