CFTC Commissioner Lauds the Ripple Win as Initiating US Regulatory Clarity
A review of the Judge Analis Torres ruling that granted Ripple Labs deserving win, though partial, is perceived by the regulatory commissioner as the catalyst to deliver the elusive regulatory clarity in the US.
The review conducted by Commissioner Caroline Pham of the Commodity Futures Trading Commission (CFTC) portrays that the court pronouncements regarding digital assets and securities have become a solid ground to deliver crypto-specific regulatory clarity.
Pham, who serves at the CFTC, is convinced that the partial victory attained by Ripple against SEC delivers the long-sought regulatory clarity by operators in the US crypto industry. She considers that Judge Torres’ view that XRP offered to the general public is not security becomes the focal point. She is optimistic that the impact of the ruling transcends beyond the XRP-led boom witnessed in the industry as the cryptos rallied to their all-time high.
XRP Win Positions US Course to Realize Regulatory Clarity
Commissioner Pham admitted in her address during the Monday, July 17 appearance on Bloomberg TV that the Ripple win is a big court decision concerning the crypto assets classification. The court opinion positions the US on course to eventually attain regulatory clarity.
Pham revisited her pronouncements in 2022 that leaned towards witnessing the regulatory clarity on digital assets initiated in the courts’ context. She considers the ruling granting a split victory the starting point.
Pham reiterated her availability to participate in the regulatory working groups alongside other regulators in the US. She urged the Securities and Exchange Commission (SEC) to join other regulators in pursuing a holistic approach to deliver crypto-specific regulation.
Pham’s comments regarding solving the elusive regulatory clarity come after the San Francisco-based Ripple triumphed in the ongoing legal battle. The case involved the alleged selling of unregistered securities to US customers.
The July 14 ruling sparked an XRP-led boom in the digital assets industry, with procrypto advocates predicting a similar win for Coinbase and Binance. The two leading crypto exchanges are embroiled in suits initiated by SEC alleging involvement in offering unregistered assets to the public.
SEC’s Chair Critical of XRP Win, Vows to Sustain Enforcement Actions
The ruling by Judge Torres, sitting in the New York Southern District, Court received criticism from SEC chair Gary Gensler. He dismissed the finding that XRP sale to retail investors on the crypto exchange platforms is not a security.
Gensler addressed the Friday ruling as disappointing in a Monday, July 17 press conference. The chair’s remarks echoed previous suggestions singling Bitcoin as not a security.
Gensler’s statements on Monday portray the agency is yet to ditch the stance that all altcoins are securities. The chair vowed to sustain the enforcement actions despite the Ripple triumph that would likely shape ongoing cases against Coinbase and Binance.
Gensler’s determination to sustain the crackdown aligns with the admission by Former CFTC chair Timothy Massad. He ruled that the SEC and CFTC would likely adjust their approach to pursuing enforcement cases despite Judge Torres ruling in Ripple’s favor.
Tokenizing Real-World Asset Will Modernize Financial Markets
Commissioner Pham illustrated the essence of optimizing real-world asset (RWA) tokenization. She considered that tokenizing money market funds on various blockchain technology offer real opportunities when seized, facilitating the modernization of financial markets.
Commissioner Pham observed that traditional finance companies portray heightened involvement in real-world asset protocols. The trend results in several RWAs outpacing and outperforming decentralized finance (DeFI) assets.
Editorial credit: T. Schneider / Shutterstock.com
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