U.S. Representatives Dusty Johnson and French Hill have published an op-ed in The Hill, proposing fresh digital asset legislation. In their piece, published by The Hill, they criticize Securities and Exchange Commission (SEC) Chairman Gary Gensler's stance that nearly all digital assets, except Bitcoin, are securities.
Despite Gensler's assurance, the Ripple ruling exposed the complexities of categorizing digital assets and highlighted the inadequacies of current regulatory frameworks.
The court ruled that Ripple's token, XRP, is not inherently a security, contradicting the SEC boss's view that most digital assets are.
This ruling is shaping up to be a watershed moment for the mercurial digital asset industry, sparking a bipartisan call for clarity on the Howey test, which determines what constitutes a security. The op-ed underscores the regulatory gaps in digital asset regulation, which can only be resolved through legislation.In response to the Ripple decision, Johnson and Hill introduced a new bill to establish a common-sense regulatory framework for the fledgling asset class.
The suggested bill focuses on regulating transactions involving cryptocurrencies. It specifically targets a regulatory gap in the digital asset spot market, currently not supervised by the SEC.
In light of the recent Ripple case, Congressmen Hill and Johnson, among others, have urged the SEC Chairman to work closely with Congress to establish a robust and effective regulatory structure for the digital asset market.
They contend that proactive legislation, rather than reactive enforcement, is crucial for mitigating future digital asset market issues.
The ongoing dialogue signals a critical juncture for digital asset regulation in the U.S, with a clear need for comprehensive legislation to ensure a safe and well-regulated digital asset market.