Key Points
- Ripple won a court battle against the US SEC that XRP is not a security
- The development is causing an uproar, with the US Financial Services GOP asking the SEC to work with Congress to regulate the industry
Gary Gensler is under fire after the US SEC partially lost a case against Ripple in the Southern District of New York. Judge Torres ruled on July 13 that the XRP token is not a security so long as it is traded programmatically on exchanges. The US House Committee on Financial Services for Republicans has asked him to work with Congress to regulate digital assets.
Gary Gensler and Congress must work together following the partial loss in the XRP Ripple case
The US House Committee on Financial Services has asked Gary Gensler to cooperate with the US Congress to regulate crypto assets following a disgraceful loss against Ripple, and the US SEC partially lost that the sale of XRP tokens on primary markets does not constitute securities features.
However, the sale of XRP tokens to institutional investors and venture funds passes the Howes test and can be regulated under securities laws. As a result, Coinbase and Binance have gained an edge against the SEC in the ongoing crypto lawsuits, which shows the authority did not do a very good job when pushing Ripple in a years-long court battle.
This development calls for unison in regulating crypto assets, a move that House Rep Emmer agrees with. Emmer and other lawmakers have tabled a regulation to see Gary Gensler ejected from power and SEC restructured, but it is yet to be heard and voted in the US Congress.
Keep watching Fintech Express for more updates on this and other fintech-related developments.