Regulation
Ripple Vs SEC, Torres decision, role of the XRP army
The U.S. House of Representatives votes on the Financial Innovation and Technology for the 21st Century (FIT21) Act, the first step in a U.S. regulatory framework to clarify the regulation of digital assets. The Ripple v. SEC lawsuit, Judge Torres’ summary judgment, and the support of the XRP army, including lawyers, played a crucial role in preparing the historic bipartisan crypto bill.
FIT21 crypto bill passes
In the United States, the Financial Innovation and Technology for the 21st Century Act (FIT21), HR 4763, will provide regulatory clarity on the regulation of digital assets and protect consumers, becoming the most significant crypto bill to date. The crypto bill, favored by Republicans, has become a key talking point amid this year’s upcoming elections.
Some Democrats also supported the crypto bill that will clarify which regulator, the SEC or CFTC, has jurisdiction over digital assets. In addition to ensuring consumer and investor protection, this will help distinguish which digital assets are commodities and securities.
Member of the US House Ranking Maxine Waters says the bill is not fit for purpose and can create huge loopholes. Democrats came out against the crypto bill. At the same time, the White House said it would not issue a veto threat against the FIT for the 21st Century Act, if it passes the House.
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Mentions of Ripple Vs SEC in a game of FIT21
CryptoLaw, founded by law firm Deaton, said the Ripple v. SEC lawsuit, Judge Torres’ ruling in the case, and the XRP Army’s relentless push for clarification helped shape the project of law.
A section in the crypto invoice aims to clarify the treatment of digital assets sold under an investment contract. “A digital asset sold or transferred or intended to be sold or transferred under an investment contract is not and does not become a security by reason of its sale or transfer under that investment contract “, we can read.
Judge Torres stated this in the Ripple versus SEC lawsuit that the token itself is not a security, such as programmatic sales by exchanges, but offerings and sales of the token to institutions are securities. The XRP community has called for changes to the existing securities law to make it more practical for new technologies.
CryptoLaw said that the Chairman of the SEC Gary Gensler opposes FIT21 because he wants to continue arguing against Judge Torres’ summary judgment.
The House Agriculture Committee criticized Gary Gensler and the SEC for the political nature of their position. He also highlighted that the July 2023 XRP decision was a key development in creating a regulatory framework.
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