Republican lawmakers are preparing a new crypto bill in wake of Ripple decision

Republican Rep. Glenn Thompson (R, Pennsylvania) is preparing to introduce a cryptocurrency bill to the House of Representatives this week and believes the recent Ripple ruling will help boost Democratic support for the bill. Bloomberg News reported on July 18.

A court last week ruled that Ripple’s programmatic sale of XRP to the public did not qualify as a securities sale or investment contract under the Howie test, potentially impacting the law’s approach to similar cryptocurrencies. have a nature.

Thompson said the ruling shows there is “confusion” in the industry about how securities laws apply to cryptocurrencies, and lawmakers need to step in and provide the clarity they need. said.

He said:

“It is up to Congress to intervene and provide both certainty and clarity.”

Thompson added that he “hopes” the ruling will help convince lawmakers on both sides to work together to develop a solid solution to the industry’s predicament.

Digital asset market structure

of Digital asset market structure The bill was led by Thompson and Rep. Patrick McHenry, with the support of Rep. French Hill and Rep. Dusty Johnson.

The bill was first introduced to the House of Representatives for preliminary consideration on June 2, and was then scheduled to go through a vote phase in July.

The bill proposes a new regulatory framework to classify cryptocurrencies as securities or commodities, intended to provide greater clarity and certainty to the industry. We also plan to block the application of exchange rules to non-exchange services such as wallets and node operators.

Under the bill, all cryptocurrencies would be considered commodities and regulated by the CFTC. or securities and are regulated by the SEC.

Democratic lawmakers have expressed skepticism, with some questioning the need for the bill, a potential obstacle to its passage.

For example, Rep. Maxine Waters recently asked the Treasury and SEC to provide feedback on the bill and whether current securities laws are good enough for the industry.

Waters also asked whether amending existing laws is a better option than introducing new laws.

The Treasury Department and the SEC have not officially responded to the letter as of this writing.

Following Ripple’s decision, first published on CryptoSlate, post-Republican lawmakers are preparing a new cryptocurrency bill.