• Two US lawmakers, Dusty Johnson and French Hill, argue that the recent ruling in the SEC’s lawsuit against Ripple indicates Congressional legislation is necessary for the crypto space.
• The legislators criticize SEC Chair Gary Gensler’s stance that every token besides Bitcoin (BTC) is a security and point to their recently introduced Financial Innovation and Technology for the 21st Century Act as an effort to remedy current legislative blind spots.
• Democratic representatives oppose this bill, saying it takes resources away from other issues that should be prioritized by the House Agriculture Committee.
SEC Lawsuit Against Ripple
The U.S. Securities and Exchange Commission (SEC) recently brought a lawsuit against Ripple over its sale of XRP tokens. Judge Analisa Torres ruled that Ripple’s automated, open-market sales of XRP did not constitute security offerings, contrary to what the SEC alleged. However, she favored the SEC’s claim that Ripple’s sale of XRP directly to institutional buyers constituted a securities offering.
Two US Lawmakers React
Two American lawmakers – US Representatives Dusty Johnson (R-S.D.) and French Hill (R-Ark.) – said in an op-ed in The Hill that Judge Torres’ decision about XRP “exposes the inadequacies in the current regulatory framework”. They criticized SEC Chair Gary Gensler’s previous assertions that every token besides Bitcoin (BTC) is a security and pointed to their recently introduced Financial Innovation and Technology for the 21st Century Act as an effort to remedy current legislative blind spots.
Democratic Representatives Oppose Bill
Democratic representatives oppose this bill, saying it takes resources away from other issues that should be prioritized by the House Agriculture Committee, arguing the legislation represents “a handout to crypto exchanges, Wall Street, etc”. They argue such efforts are unnecessary when there are many more pressing issues at hand than providing support for cryptocurrency markets.
Legislature Necessary for Crypto Space
Johnson and Hill argued that Congress needs to pass legislation so cryptocurrencies can have clear regulations; otherwise consumers may not have proper protection within this industry. Furthermore they assert this decision damages Gensler’s approach but it does not answer all questions surrounding digital assets being classified as securities or not under Howey test criteria set by Supreme Court decades ago.
Conclusion
Given these facts it is clear Congress must step in with precise legislations so investors have clarity on which assets are considered securities or not when investing into digital assets like cryptocurrencies – thus granting them needed protections while allowing innovative technology continue developing different use cases for them too!