• Pennsylvania Representative Glenn Thompson is planning to propose new crypto legislation following the recent verdict in the SEC lawsuit against Ripple.
• The court’s decision determined that XRP tokens are not securities when offered on exchanges, offering clarity on how crypto assets should be treated.
• Rep. Thompson and North Carolina Rep. Patrick McHenry plan to introduce a bill this week that seeks to clarify when crypto assets should be regulated as securities or commodities.
Pennsylvania Lawmaker Proposing Crypto Legislation
Pennsylvania Republican Representative Glenn Thompson is reportedly planning to propose new crypto legislation after last week’s verdict in the U.S Securities and Exchange Commission (SEC) lawsuit against Ripple. In a ruling that counters the SEC’s argument that most tokens offered to retail investors are unregistered securities, U.S District Judge Analisa Torres says XRP tokens are sold as securities only when made directly to institutional investors pursuant to written contracts, but not when offered on exchanges.
Bill Seeks To Clarify Crypto Regulation
Thompson is optimistic about getting support for the crypto bill he is championing following the court’s decision and is pushing for its introduction with North Carolina representative and House Financial Services Committee Chairman Patrick McHenry this week. The proposed legislation seeks to clarify when crypto assets should be regulated as securities or commodities and give the Commodity Futures Trading Commission (CFTC) the authority to oversee certain tokens.
Court Ruling Gives Clarity On Crypto Assets
Thompson commented on how the Ripple court case highlights confusion around digital asset regulation and believes it is up to Congress to provide certainty and clarity: “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.”
Ripple Case Verdict Counters SEC Argument
The court ruled against the SEC’s argument that most tokens offered to retail investors are unregistered securities, instead determining that XRP tokens are sold as securities only when made directly to institutional investors pursuant their written contracts but not when offered on exchanges. This provides further clarification on current regulation regarding digital assets in terms of how they can be classified under applicable law.
Proposed Bill Set For Introduction This Week
Reps Thompson and McHenry plan on introducing their bill this week which will hopefully clear up any remaining confusion surrounding these issues while giving legal guidance both for cryptocurrency users who want more regulatory certainty, as well as providing oversight from entities like CFTC who seek greater control over potential security violations within this space..