U.S. Senator Cynthia Lummis has tweeted her support for the recent ruling by Judge Analisa Torres, which found that the XRP token sold on digital asset exchanges is not a security. According to her, this decision highlights the critical importance of Congress establishing a transparent and well-explained regulatory framework for cryptocurrencies.
Lummis, in her statement, focused on the significance of the ruling and its implications for the oversight of cryptocurrencies. She even went on to say that the ruling shows how important it is to have a well-defined crypto framework.
My statement in response to the Southern District of New York’s ruling in Securities and Exchange Commission v Ripple Labs, Inc. pic.twitter.com/bmIxR0AmhT
— Senator Cynthia Lummis (@SenLummis) July 14, 2023
She also emphasized the value of applying the Howey test. This is the standard method for checking if a financial instrument is a security. She mentioned the Lumms-Gillibrand Bill or the Responsible Financial Innovation Act. She and Senator Kirsten Gillibrand introduced it.
The bill’s goal is to clarify the legal status of digital assets and establish regulatory guidelines consistent with the Howey test’s definitions.
With regard to the implications of the case between Ripple Labs and the Exchange Commission, her decision has garnered a lot of praise and support. This case has the potential to set a precedent that shapes the future of digital asset regulation in the United States.
It is unclear how Congress will respond to Lummis’s request as the verdict is still partially in favor of the XRP token. It’s encouraging to see lawmakers giving the crypto exchange market the attention it deserves, which should lead to further expansion.
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