Following the court’s decision on the United States, several American lawmakers have urged Congress to implement crypto law.
US Lawmakers on Regulation of Crypto Law (Source: Bitcoin)
Legislation in Crypto Law Regulation
From the published report on Bitcoin, the case involving XRP between the Securities and Exchange Commission (SEC) and Ripple. One senator stated that the SEC under Gary Gensler “cannot continue to pursue its regulation by enforcement approach, which only harms investors and creates uncertainty.”
Several U.S. senators urged Congress to approve legislation to regulate cryptocurrency law and uphold the court’s decision in the Securities and Exchange Commission (SEC) v. Ripple case regarding XRP. Patrick McHenry (R-NC), the leader of the House Financial Services Committee, and Glenn “GT” Thompson (R-PA), the chair of the House Agriculture Committee, released a joint statement on Friday on the SEC v. Ripple decision and the requirement for legislative clarity in the cryptocurrency ecosystem.
“It is naïve to believe otherwise, but this judgment highlights the necessity for Congress to give clear rules of the road for the digital asset ecosystem. Large institutional investors are given more safeguards under the decision than regular Americans are. This is what occurs when regulators compel courts to decide policy rather than Congress, according to the lawmakers. They then urged Congress to approve a bill they had introduced that focuses on laws for market structure.
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Crypto Law: How Does it Affect the Market Structure
The lawmakers emphasized that all investors, customers, and market participants will receive the same level of long-term protection seen in conventional financial markets as a result of the overall market structure legislation. The court ruled that although digital assets may not by themselves be securities, they can occasionally be made available as a component of investment contracts, as permitted by the law.
The regulation by enforcement strategy of Gary Gensler’s SEC must be abandoned because it simply hurts investors and increases uncertainty, they continued. The SEC chairman has been under fire from lawmakers for using enforcement to control the cryptocurrency market by implementing the crypto law. The removal of him as the head of the securities regulator is also the subject of a congressional measure. In addition, Gensler asserted that, except for Bitcoin, all crypto tokens are securities.
“Filling the regulatory deficiencies identified in this decision will be impossible without our bill on the market structure of digital assets. We are still dedicated to giving all Americans strong protections in the market for digital assets. This month, we want to move this legislation out of our respective committees, said McHenry and Thompson.
The senator continued that the decision confirms the need for Congress to deliver a clear regulatory structure for the crypto asset industry that provides the highest level of consumer protection. They need to pass Lummis-Gillibrand to uphold the Howey test as interpreted by the Southern District of New York. A recent revision was made to the Lummis-Gillibrand Responsible Financial Innovation Act. The legislation was first presented in June of last year. On July 12, Lummis reintroduced it to the Senate.
The Ripple case is a huge milestone in proving that a token is separate and different from an investment contract it may or may not be a part of, tweeted Congressman Tom Emmer on Thursday. Let’s now enact it into law.
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