Global: Ripple Court Win Sets the Stage for Crypto Regulatory Clarity in the US, says CFTC Commissioner

CFTC Commissioner Caroline Pham believes that recent court rulings, including Ripple’s partial victory, are paving the way for regulatory clarity in the United States regarding digital assets and securities.

During an interview on Bloomberg TV, Commissioner Pham expressed her view that the definition of securities would be clarified through court decisions, leading to regulatory certainty. She highlighted significant court opinions that have been released in this regard.

Pham emphasized the importance of collaboration among regulatory agencies in developing a holistic approach to crypto regulation. She expressed her eagerness to participate in regulatory working groups and called for coordination with agencies such as the Securities and Exchange Commission (SEC).

The comments from Commissioner Pham came shortly after Ripple achieved a key partial victory in its ongoing legal battle with the SEC. The ruling by Judge Analisa Torres of the Southern District of New York on July 14 stated that XRP was not a security when sold to retail investors on digital asset exchanges.

SEC Chair Gary Gensler expressed disappointment with the ruling during a press conference on July 17. Gensler has previously indicated that, in his view, all digital assets, except Bitcoin, are securities. However, the SEC has not officially adopted this stance.

Despite the Ripple win, Gensler affirmed the SEC’s commitment to enforcement actions and continued regulation of the crypto space.

Commissioner Pham also highlighted the potential of real-world asset (RWA) tokenization, stating that there are opportunities to modernize financial markets through the blockchain-based tokenization of money market funds. The engagement of traditional finance companies with real-world asset protocols has resulted in some RWAs outperforming decentralized finance (DeFi) assets in recent times.

As the regulatory landscape evolves, the outcome of court cases and the collaboration between regulatory bodies will play a crucial role in shaping clear and comprehensive regulations for the crypto industry in the United States.