A number of countries have been working on crypto legislation, but one that has been widely awaited is in the United States. Senators Kristen Gillibrand and Cynthia Lummis have been talking about the said piece of crypto legislation for months and there is now hope that it might finally move forward. The US lawmakers are hoping that this piece of legislation would assist them in creating permanent barriers around the digital currency space. The Lummis Bill has become one of the most high-profile moves that have been made for introducing legislation pertaining to crypto in the United States.
The purpose of the bill is to create a distinction between the two major regulatory authorities of the US markets and to ensure that the status of ‘brokers-dealers’ is no longer assigned to crypto miners in the country. Cynthia Lummis has said that if the legislation is approved, the digital assets will formally be integrated into the country’s financial system and this might be a game-changer for numerous cryptocurrencies, including the XRP token of Ripple Labs. It was about a year ago when the Securities and Exchange Commission (SEC) in the US had file a lawsuit against Ripple, which had resulted in a long legal battle.
According to the SEC, the company is in violation of the securities laws and this has morphed into a major brawl that potentially puts the crypto regulation future at stake. Ripple Labs’ was accused of using their token for conducting an ‘illegal securities offering’ and the SEC said that the company had failed to provide the managerial and financial information that was needed for running such an offering. These claims have been denied by the company and it clarified that XRP is not sold as an investment, but as ‘on-demand liquidity’. In fact, they said that the XRP token was issued even before the company was founded and it is not a speculative asset.
Ripple claims that XRP is a transparent and lawful utility token. The case is still ongoing with no resolution in sight so far. Many have predicted that the outcome of the case would have a far-reaching impact on the US crypto space, as well as on a global scale, regardless of whether Ripple or the SEC prevail. If it is the latter, then it would be a major setback for crypto operations because it would establish unwanted and clear restrictions.
If the former wins, then it would give the crypto industry a huge boost, particularly now when there is a great deal of doubt surrounding it. Gillibrand and Lummis have been committed to developing a regulatory framework designed to help the crypto market flourish. The legislation they have developed would be able to offer more clarity in terms of assets’ classification. Moreover, it also states that standard coins and altcoins be regulated differently because they have been created in a different way. The legislation will be able to eliminate a lot of confusion that have been created by some regulations and even some organizations.