Ripple Decision Reinforced the Need for US Congress to Establish Regulation for Cryptocurrencies, Senator Lummis

US Senator Cynthia Lummis believes US Judge Torres's ruling in the Ripple vs. SEC suit further supports the need for Congress to establish a comprehensive crypto regulation. She expressed this intweet while recounting her bipartisan bill with New York's Senator Kirsten Gillibrand.

The collaborative bill builds upon a previous version introduced a few months before the FTX exchange Fiasco in 2022. Following the bill's recommendation, the SEC is expected to proactively protect end users and impose disclosure requirements on crypto firms.

Senator Lummis: The Need for an Extensive Crypto Regulation Bill

The US Senator Cynthia Lummis from Wyoming stressed the immediate need for Congress to create an extensive regulatory framework for cryptocurrencies in the US.

Judge Torres' ruling on the multi-year Ripple vs. SEC legal battle on July 13 catalyzed her recent call. Lummis pointed to the lack of straightforward guidelines regarding cryptocurrencies in her tweet.

Furthermore, Senator Lummis is collaborating with Senator Kirsten Gillibrand from New York to establish a Lummis-Gillibrand bill. Lummis states this bill is the most extensive and bipartisan proposal to salvage the digital asset industry.

The Rebranded Bill

According to the Wyoming Senator, the bipartisan bill aims to safeguard consumers' interests while creating a favorable arena for advancement and innovation in the industry.

She noted that Congress could introduce sufficient consumer safeguards and protections on the crypto industry to prevent events like the collapse of the FTX exchange.

She further claimed that they (Gillibrand and herself) know how to regulate the crypto space effectively. She also claims they clearly distinguish which assets are securities and commodities.

The Lummis-Gillibrand bill entrusts the Securities and Exchange Commission (SEC) with being more proactive in protecting consumers. It will also impose disclosure Ripple requirements on crypto-focused companies in the US.

In addition, cryptocurrency exchanges must register with the US Commodities Futures Trading Commission (CFTC) to sustain accountability and transparency under the proposed bill.

The two Senators further expressed confidence in the CFTC and SEC's ability to play their part in the crypto industry to ensure growth and compliance.

The Wyoming Senator explained that industry professionals and authorities had carefully considered and vetted their joint approach. The bill, therefore, signified a larger consensus for progress.

The ongoing regulatory uncertainty has raised concerns that digital asset companies might alternatively venture into crypto-friendly foreign jurisdictions and possibly lose out on the US market.

According to an NBC report, finance giant JPMorgan had urged US legislators to create an extensive framework for regulating the crypto sector and clearly state the CFTC's and SEC's responsibilities.

Meanwhile, the US SEC remains a loggerhead with crypto exchanges as it strives to tighten the reins on the novel industry.

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