CFTC Commissioner Caroline Pham believes that the path to regulatory clarity for cryptocurrencies in the US is set after Ripple’s partial victory.
Speaking on Bloomberg on July 17, Commissioner Pham He said Recent major court decisions on the classification of crypto assets will finally lead to regulatory clarity.
“You know, I said last year that we’re going to see regulatory clarity first in the courts around the definition of security, and I think we’ve seen that with some very large court opinions that have been issued.”
Pham said she looks forward to participating in the regulatory working groups and hopes that other US regulators, such as the Securities and Exchange Commission, will work together on a “comprehensive approach” to regulating cryptocurrencies.
Pham’s comments come just days after San Francisco fintech firm Ripple won a major partial victory in an ongoing court battle in which the Securities and Exchange Commission accused it of selling unregistered securities.
Judge Annalisa Torres of the Southern District of New York ruled on July 14 that XRP was not a security when it was sold to retail investors on digital asset exchanges.
Thank you @employee For the opportunity to talk about our important GMAC initiatives! Other than cryptocurrencies, institutional markets and central banks are looking into tokenizing real assets such as bonds. Today, we heard about the international developments, both the US and the EU, and the main takeaways. https://t.co/cWTShDy2Bf
– Caroline de Pham (@CarolineDPham) July 18, 2023
SEC President Gary Gensler did not receive the ruling well and called it disappointing in a July 17 press conference. Gensler has previously suggested that every digital asset other than Bitcoin is a security, though his agency has not gone so far as to say the same.
Despite this, Gensler vowed to continue enforcement action after Ripple’s recent victory.
Related: Ripple Court Ruling Makes Call for Regulation ‘More Urgent and Urgent’ – Ex-CFTC Head
Commissioner Pham also highlighted the importance of the Real World Asset Token (RWA). She said there are “real opportunities” to modernize financial markets by converting money market funds into tokens on the blockchain.
Traditional finance companies are increasing their involvement with real-world asset protocols, which has led to many RWAs outperforming DeFi assets recently.
magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Word?