Republican Congressman Glenn Thompson (R-PA) is preparing to present his new cryptocurrency bill in the House of Commons, expecting that the recent Ripple ruling will help garner support from Democrats. The court ruling issued last week stated that the sale of Ripple’s XRP to the general public does not qualify as securities sales, which has implications for the legislation’s approach to similar cryptocurrencies.
Thompson believes that the Ripple ruling exposes the confusion surrounding how securities laws apply to cryptocurrencies and emphasizes the need for lawmakers to intervene in order to provide more decisive guidelines. He asserts that Congress holds the responsibility to offer both certainty and clarity on the matter.
Thompson remains optimistic that the recent ruling will serve as a persuasive argument for lawmakers from both political parties to collaborate and find a sustainable solution to address the challenges faced by the cryptocurrency industry. The Digital Asset Market Structure bill, led by Thompson and Congressman Patrick McHenry, with support from Congressmen French Hill and Dusty Johnson, aims to establish a new regulatory framework. This framework would categorize cryptocurrencies as either a commodity or a security, enhancing clarity and certainty for the industry.
The bill intends to prevent the application of exchange rules to non-exchange services like wallets and node operators while proposing that all cryptocurrencies be classified as either commodities (under the supervision of the CFTC) or securities (regulated by the SEC). The goal is to provide comprehensive oversight for the crypto market.
However, Democratic lawmakers have expressed skepticism, casting doubt on the necessity of this bill and potentially serving as a roadblock to its passage. Congresswoman Maxine Waters, for instance, has recently requested feedback from the Treasury and the SEC on whether existing securities laws adequately address the industry’s needs. Additionally, she has questioned whether modifying the current laws would be a more suitable solution than introducing new legislation.
As of now, the Treasury and the SEC have yet to make a public response to Congresswoman Waters’ letter. This lack of reaction leaves unanswered questions about their stance on the proposed bill and whether they believe additional legislation is necessary.
Congressman Glenn Thompson’s new cryptocurrency bill carries the hopes for increased clarity and certainty in the industry. The recent Ripple ruling, which declared that the sale of XRP does not qualify as securities sales, has potentially paved the way for bipartisan support. Nevertheless, the skepticism expressed by some Democratic lawmakers presents a significant challenge that needs to be addressed for the bill to advance. The Treasury and the SEC’s response to Congresswoman Waters’ request for feedback will also play a crucial role in determining the bill’s fate. The cryptocurrency industry eagerly awaits further developments in this ongoing legislative process.
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