• Sat. Jun 22nd, 2024

Senator Lummis Calls for Unambiguous Regulations for Crypto Following XRP Ruling

Phillip Seefeldt

ByPhillip Seefeldt

Jul 17, 2023

Cynthia Lummis, a prominent US Senator, has recently commented on the latest ruling that Judge Analisa Torres gave in Ripple’s case. In that ruling, she mentioned that XRP (the local token of the well-known crypto exchange Ripple) should not be categorized among the securities. Nonetheless, she conditioned this status for the token with the time when it is traded on the platforms responsible for exchanging digital assets.

Senator Cynthia Lummis Demands Transparent Regulations for Cryptocurrency after the Ruling in the XRP Case

While giving her remarks on this judgment, Lummis pointed toward its significance on her Twitter handle. The senator stated that the respective ruling stresses an immediate requirement for the US Congress to develop a clear as well as thorough regulatory agenda to deal with the crypto assets. In addition to this, Lummis also discussed the significance of the ruling as well as its effect on the regulation of the cryptocurrency sector.

In this respect, Lummis disclosed that the verdict highlights the instant need for the provision of a broad-level crypto agenda by Congress for crypto to prioritize the protection of the clients. The Wyoming senator has maintained her status as a proponent of Bitcoin for a considerable period. Apart from that, Lummis asserted that the establishment of an unambiguous crypto agenda is crucial for the protection of investors.

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As per Lummis, such an endeavor would additionally promote innovation within the entire crypto market. Moreover, the senator noted that the maintenance of the Howey test is also a significant task. It is a legal standard that is utilized to evaluate if an investment comes in the category of securities. Particularly, Lummis referred to the Responsible Financial Innovation Act. The respective act is also called the Lummis-Gillibrand Bill.

It is a legislative initiative that is co-introduced by Senators Kristen Gillibrand and Cynthia Lummis. The above-mentioned bill’s purpose is to offer clarity and develop regulatory guidelines concerning digital assets to create an alignment between them and the Howey test’s interpretation.

The plea filed by Lummis for congressional action has significant merit, especially in the case of the lengthy effects of Ripple and SEC’s lawsuit. The consequence of the legal dispute between the US Securities and Exchange Commission (SEC) and Ripple Labs could make a precedent to shape the regulatory landscape regarding the crypto assets within the US jurisdiction.

Legislators Show a Huge Acknowledgment for Lummis’ Appeal for Crypto-Related Regulatory Clarity

The lack of distinct guidelines leaves investors and entrepreneurs in an uncertain state. This obstructs economic expansion as well as innovation. The ruling given by the court was partially supportive of Ripple. Nevertheless, it is still uncertain how the appeal of Lummis will be addressed by Congress for clarity in the crypto-related regulation. Even then, her endeavors signify an increasing acknowledgment among the legislators.

Phillip Seefeldt

Phillip Seefeldt

Phillip Seefeldt is a skilled and perceptive news writer known for his comprehensive analysis and engaging writing style. With a commitment to accuracy and a deep understanding of current affairs, his articles provide readers with insightful perspectives and thought-provoking insights.

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