A leading member of the House, Representative Glenn Thompson, is hopeful that a recent court decision, seen as curbing the influence of the U.S. Securities and Exchange Commission (SEC), will strengthen the case for the cryptocurrency legislation he has been advocating.
According to Bloomberg, Thompson, a Republican from Pennsylvania who presides over the House Agriculture Committee, divulged his plan on Tuesday to officially bring forth the proposed bill this week. He’s partnering with Patrick McHenry, the House Financial Services Committee Chairman from North Carolina, also a Republican.
A federal ruling last week determined that Ripple Labs Inc.’s XRP token sales were securities—falling within the SEC’s jurisdiction—when sold directly to institutional investors via contractual agreements.
The Ripple case has underscored the existing ambiguity surrounding the status of digital assets under securities laws, argues Thompson. He believes it’s Congress’s duty to intervene, establishing clear guidelines. Thompson is optimistic that the ruling will motivate Democrats to back the proposed bill, and possibly co-sponsor it.
“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.”Glenn Thompson.
The proposed bill, preliminarily disclosed in June and scheduled for advancement through committees next week, seeks to distinguish when cryptocurrencies are regulated as securities or commodities. It also aims to authorize the Commodity Futures Trading Commission to oversee certain tokens.
The Ripple ruling’s timing has been deemed as “extremely beneficial” by Thompson, as he asserts it highlights the need for clear guidelines to safeguard consumers. He believes this development might help convince skeptics to support the bill.