Senator Urges Congress to Create Clear Crypto Regulations Following the XRP Ruling
Senator emphasised that the judgement shows how important it is for Congress to establish a secure encryption framework that puts consumer safety first.
U.S. Senator Cynthia Lummis has gone to Twitter to highlight the significance of Judge Analisa Torres’s finding that the XRP token issued by Ripple should not be considered a security when traded on digital asset exchanges.
Lummis utilised the court’s decision to push for clear and consistent regulation of cryptocurrencies from the federal government.
Lummis stressed the importance of the court’s decision and its potential effects on cryptocurrency legislation.
She emphasised that the judgement shows how important it is for Congress to establish a secure encryption framework that puts consumer safety first.
Senator Lummis, a Bitcoin supporter for quite some time, has stressed the need for a clear regulatory framework for cryptocurrencies, one that protects investors while also encouraging new developments in the sector.
In addition, Lummis emphasised the need of upholding the Howey test, the judicial benchmark used to establish whether an investment is a security.
She made reference to the Responsible Financial Innovation Act, which she and Senator Kirsten Gillibrand co-introduced and is also known as the Lummis-Gillibrand bill.
The bill’s authors hope its provisions will help bring the definition of digital assets into line with the way the Howey test is currently interpreted.
Given the far-reaching consequences of the legal conflict between Ripple Labs and the U.S. Securities and Exchange Commission, Lummis’s plea for legislative action bears considerable weight.
The decision in this case might have far-reaching implications for how digital assets are regulated in the United States.
Without clear rules, business owners and investors are left in the dark, which is bad for creativity and the economy.
Lummis’s efforts suggest that politicians are becoming aware that the crypto business needs a progressive regulatory policy in order to unleash its full potential, however, it is still unclear how Congress will respond to her request for legal clarity in the cryptocurrency market.