The US Regulatory Clarity has Begun in Court Following Ripple Victory: CFTC Commissioner

One of CFTC's Commissioner, Caroline Pham, believes the recent court ruling regarding crypto asset Ripple and SEC is a starter for crypto regulatory clarity.

In the court ruling, US Judge Torres of the Southern District of New York concluded that Ripple does not constitute a security when sold to retail traders on crypto exchanges.

The court ruling was unfavorable to the United States Securities and Exchanges Commission (SEC), and the SEC chairperson, Gary Gensler, called it a disappointing experience.

CFTC Commissioner Believes Crypto Regulation in the United States Has Begun

Caroline Pham believes Ripple's partial win is the first step to the clarity of United States digital asset regulations. Pham is one of five United States Commodities Futures Trading Commission (CFTC) commissioners.

Pham explained on Bloomberg TV that the recent court ruling about the classification of virtual assets will eventually bring about regulatory clarity.

The Commissioner said she looked forward to partaking in regulatory working associations and hoped other US regulators, like the SEC, would bring a holistic approach" to cryptocurrency regulation.

Her comments come only a few days after the San Francisco crypto giant Ripple bagged a partial win in a current battle against the SEC.The United States Securities and Exchanges Commission (SEC) allegedly claimed Ripple Labs was selling unregistered securities to retail and institutional investors.

Moreover, US Judge Analisa Torres of the Southern District of New York concluded on July 14 that Ripple's native token XRP was not a security when sold to retail traders on crypto exchanges.

Bloomberg took to the public, announcing Commissioner Pham's opinion regarding regulating the Treasury market and how the SEC and CFTC can collaborate on crypto asset regulation.

SEC Chairperson Unhappy with Court Ruling

It is worth noting that the July 13 court ruling was badly received by the SEC Chairperson Gary Gensler, who claimed it was a disappointment at a press conference on July 17.

The SEC Chair had previously claimed that every crypto asset, except Bitcoin, constitutes a security. However, his agency does not claim the same opinion as him on that.

Regardless, Gensler is bent on continuing with legal actions after the recent Ripple victory against his agency. A further point made by Commissioner Pham was the significance of real-world asset (RWA) tokenization.

She added that there were many real opportunities" to advance financial markets by tokenizing money market funds on the blockchain.

Traditional finance firms have been increasing their adoption of real-world asset protocols, recently leading to many RWAs outperforming decentralized finance (DeFi) protocols.

As per a recent report by Cointelegraph, Maple, and TradFi, had grown by 117.8% and 26.6%, respectively, in 2023.In contrast, the growth from the DeFi pulse index within the same timeframe was 13%.

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