CFTC Commissioner Caroline Pham believes recent court decisions surrounding digital assets and securities are paving the way for regulatory clarity in the United States. In a Bloomberg TV interview, Pham emphasized the significance of these rulings and expressed optimism about collaborative efforts among regulatory bodies to establish a comprehensive approach to crypto regulation.
Commissioner Pham’s View and Ripple’s Partial Victory
According to Commissioner Pham, the United States is now on the path to achieving regulatory clarity for cryptocurrencies. In the interview, Pham highlighted the recent significant court opinions that have emerged, specifically addressing the classification of crypto assets. She expressed confidence that these rulings will ultimately contribute to a clearer regulatory framework.
A few days ago, Ripple achieved a crucial partial victory in an ongoing court battle against the SEC. The SEC had accused Ripple of selling unregistered securities. However, on July 14, Judge Analisa Torres of the Southern District of New York ruled that XRP, Ripple’s native cryptocurrency, was not a security when sold to retail investors on digital asset exchanges. This ruling marked a significant win for Ripple.
SEC Chair’s Response
SEC Chair Gary Gensler expressed disappointment with the court’s ruling during a press conference on July 17. Gensler has previously suggested that all digital assets, except Bitcoin, should be considered securities. While the SEC has not adopted this stance, Gensler remains committed to pursuing enforcement actions following Ripple’s recent victory.
Collaboration among Regulators Essential and RWA Tokenization
Commissioner Pham stressed the importance of collaboration among regulatory bodies in shaping a comprehensive regulatory framework for cryptocurrencies. She expressed her eagerness to participate in regulatory working groups and hoped for a joint effort with agencies like the Securities and Exchange Commission. She further believes that a unified approach will be key to achieving the desired regulatory clarity.
Additionally, she highlighted the potential of real-world asset (RWA) tokenization in modernizing financial markets. She emphasized the “real opportunities” that exist for tokenizing money market funds on the blockchain. Traditional finance companies have increasingly engaged with RWA protocols, leading to the outperformance of RWAs compared to decentralized finance (DeFi) assets in recent times.
Read More:
G20 Watchdog: Global Crypto Regulations Eliminate Havens For Companies
Phishing Scammer in Canada Accused of Pilfering Over $1 Million in Crypto and NFTs