As the tides of the crypto world surge with the force of emerging technologies and continuous innovation, the navigation toward regulatory clarity within the United States has always been a challenging venture. And recent events in the crypto market seem to have set the groundwork for what could be the path to clarity.
Ripple’s recent victory in court is now being seen as a defining moment that will help shape the landscape of crypto regulation in the US, as Caroline Pham, one of the five commissioners of the Commodities Futures Trading Commission (CFTC), expressed this viewpoint in a recent interview.
According to Pham, the stepping stones towards regulatory clarity for digital assets in the United States are beginning to fall into place, a process accelerated by Ripple’s recent court win.
Ushering In Regulatory Clarity
In a recent discussion on Bloomberg TV, Commissioner Pham voiced her belief that significant court decisions concerning the classification of crypto assets are paving the way toward an era of regulatory clarity. The recent ruling in favor of Ripple and its native token, XRP, is a prime example of such a court decision.
Related Reading: Ripple Vs SEC: Will Appeals Threaten The Future Of XRP Investors?
You know, last year I said that we were going to see regulatory clarity first in the courts around the definition of security, and I think we’ve seen that with some very big court opinions that have been released.
Judge Analisa Torres of the Southern District of New York ruled on July 14 that XRP did not qualify as a security when sold to retail investors on digital asset exchanges. This decision, favoring the San Francisco fintech firm Ripple, came amid an ongoing court battle in which the Securities and Exchange Commission (SEC) accused Ripple of selling unregistered securities.
Despite the Court decision on Ripple, which was received positively, SEC Chair Gary Gensler was quick to express his disappointment. However, he further noted that the SEC would still continue to persist in its efforts to bring enforcement actions and facilitate the registration of crypto firms.
Working Toward A Holistic Regulatory Approach
Furthering the dialogue on the topic, Commissioner Pham expressed her eagerness to participate in regulatory working groups. She also highlighted the importance of collaboration among US regulators like the SEC, aiming for a “holistic approach” to crypto regulation.
Pham also emphasized the growing significance of real-world asset (RWA) tokenization. This concept brings “real opportunities” to modernize financial markets through blockchain technology, specifically through the tokenization of money market funds.
With several RWAs recently outperforming DeFi assets, traditional finance companies are increasingly engaging with RWA protocols.
XRP price is moving sideways on the 4-hour chart. Source: XRP/USDT on TradingView.comMeanwhile, over the past day, XRP has seen a slight decrease of 0.2% following a significant surge of over 50% in the past week. XRP trades at a price of $0.74, at the time of writing with a 24-hour trading volume of $2.2 billion. XRP currently has a 24-high of $0.72 and a low of $0.75.
Featured image from Unsplash, Chart from TradingView