US lawmaker Mike Flood lauds XRP and Ripple’s victory over the SEC, noting that it is now time for Congress to create clear rules for the industry.
US Representative Mike Flood has expressed his support for Ripple following the recent court ruling that deemed XRP, not a security. In response to Ripple’s statement celebrating the victory and highlighting its implications for the industry, Flood took to Twitter to commend the decision and urge Congress to take action.
This decision is an enormous victory for the future of digital assets in the United States and American innovation. Now that Chair Gensler’s spurious legal argument on XRP has been discredited, it is time for Congress to act where the SEC and Chair Gensler have failed. https://t.co/6rzajFLUog
— Rep. Mike Flood (@USRepMikeFlood) July 14, 2023
Flood’s tweet hailed the court’s ruling as a significant triumph for digital assets in the United States and American innovation. He emphasized that with the dismissal of SEC Chair Gary Gensler’s arguments against XRP, it is now imperative for Congress to step in where the SEC has failed.
Flood called for a comprehensive digital assets framework that provides regulatory clarity, promotes innovation, and safeguards American investors.
In its initial statement, Ripple underscored that the court’s ruling was not only a win for the company but also a crucial step towards achieving regulatory clarity for the entire industry within the United States.
The decision sets a precedent that could positively impact the treatment of other digital tokens in the country, fostering an environment of innovation and certainty.
The Need for Regulation
As The Crypto Basic previously reported, Brad Garlinghouse, CEO of Ripple, echoed these sentiments in a recent interview with Bloomberg.
He hoped the court’s decision would serve as a wake-up call for Congress. Garlinghouse stated that the ruling undermines the SEC’s claims that most tokens are inherently securities.
Rep. Flood’s comments reflect the growing chorus of voices advocating for clear cryptocurrency regulations. The court’s ruling has heightened the urgency for Congress to address the regulatory uncertainties surrounding digital assets.
Following the Terra implosion last May, the Biden Administration released a fact sheet in September 2022 addressing the need for proper digital asset regulations and establishing the first-ever comprehensive framework for these assets.
However, this framework did little to address the regulatory uncertainty, with the industry uncertain about which tokens are securities or commodities and how they should be regulated. The SEC has capitalized on this uncertainty to argue that all assets, except Bitcoin, are securities.
However, The Commodity Futures Trading Commission (CFTC) holds a contrasting view. To this end, the US House Committee revealed in June that it would vote this month on a bill that seeks to enforce the transition of digital assets from securities to commodities.
