According to the latest information, US Senator Cynthia Lummis posted on Twitter to highlight the value of a new court judgment by Judge Analisa Torres, who determined that Ripple’s XRP coin wasn’t supposed to be claimed as a security when sold on digital asset exchanges.
Lummis Says that Congress Should Draft Laws ASAP
Lummis emphasized that the verdict highlights the critical necessity for Congress to come up with an accurate and clear legal structure for cryptocurrencies.
According to the Bitcoin advocate, the decision emphasizes the urgent need for Congress to establish a comprehensive crypto framework that prioritizes consumer protection.
Emphasis on the Howey Test
In addition, she also emphasized the importance of retaining the Howey test — the legal criterion used to determine if an investment counts as a security. She notably mentioned the Lummis-Gillibrand bill, also known as the Lummis-Gillibrand Act, a legislative effort co-introduced by herself and Senator Kirsten Gillibrand.
Lummis aims to Create Framework for Crypto Regulation
The past few days have seen Lummis’ ongoing efforts to create a framework for cryptocurrency regulation that will allow both individuals and businesses to possess and trade digital assets in the US. She provided the update on Twitter, emphasizing her accomplishment in eliminating the inclusion of a proposed 30% digital asset mining tax in the debt ceiling accord.
How will Congress React?
However, it is still unclear how Congress will respond to Lummis’s request for regulatory clarification in the cryptocurrency sector in light of the partial verdict in Ripple’s favor. Still, her actions demonstrate an increasing awareness among lawmakers that the crypto business need an effective regulatory framework in order to reach its true potential.
It is important to note the fact that recently a pro-XRP counsel John Deaton indicated that the SEC’s potential of getting its way are “less than 3%”. Deaton, on the other side, stated in an earlier episode of the Good Morning Crypto Podcast that there’s approximately a 25% chance that ruling US District Judge Torres will rule in favor of Ripple.