ripple and SEC Impact, Torres Decision and the Role of the XRP Army in the FIT21 Crypto Bill
On May 22, the US House of Representatives took the first step towards a regulatory framework for digital assets by voting on the Financial Innovation and Technology for the 21st Century Act (FIT21). Key influences on this landmark bipartisan crypto bill include the Ripple v. SEC case, Judge Torres’ summary judgment, and support from the XRP community, including attorneys. Pro-XRP lawyer John Deaton’s CryptoLaw highlights these contributions in preparations for FIT21.
FIT21 Crypto Invoice Transitions
The U.S. House Financial Innovation and Technology for the 21st Century Act (FIT21), H.R. 4763, will provide regulatory clarity and protect consumers on the regulation of digital assets and will be the most significant crypto bill to date. The Republican-backed crypto bill has become a major topic of discussion during this year’s elections.
Some Democrats also supported the crypto bill, which would provide clarity on which regulator, the SEC or CFTC, has jurisdiction over digital assets. In addition to providing protection to consumers and investors, it will help distinguish which digital assets are commodities and securities.
US House Ranking Member Maxine Waters says the bill is not fit for purpose and could create huge loopholes. Democrats spoke out against the crypto bill. Meanwhile, the White House has said it will not threaten to veto the FIT because of the 21st Century Act if it is passed in the House.
Also Read: Ethereum ETF Approval Date: Is Thursday D-Day for SEC Decision?#NotFIT4PurposeActis The legislation will create a huge loophole that will lead to the proliferation of fraud and devastating losses for:
crypto consumers
Investors trying to save for retirement, college and other goals
Our consumers deserve better, NO #FIT21.
— U.S. House Financial Services Committee (@FSCDems) May 22, 2024
Ripple and SEC Mentioned in FIT21
CryptoLaw, founded by Deaton Law Firm, said the litigation between Ripple and the SEC, Judge Torres’ decision in the case, and the XRP Army’s relentless pressure to seek clarity helped create the bill.
A section in the crypto bill aims to clarify the treatment of digital assets sold pursuant to an investment contract. “A digital asset sold or transferred, or intended to be sold or transferred, pursuant to an investment contract is not, and will not be, a security as a result of its sale or other transfer pursuant to such investment contract,” it says.
Judge Torres confirmed in Ripple Vs SEC that the token itself is not a security, such as scheduled sales by exchanges, but offers and sales of the token to institutions are securities. The XRP community has called for changes to existing securities law to accommodate new technologies.
CryptoLaw noted that SEC Chairman Gary Gensler opposed FIT21 because he wanted to continue arguing against Judge Torres’ summary judgment.
The House Agriculture Committee criticized Gary Gensler and the SEC for the political nature of their positions. He also emphasized that the XRP decision in July 2023 is an important development in creating a regulatory framework.
XRP price is currently trading at $0.5235 and pared gains amid bullish selling. S&P Global US Composite PMI data. The 24-hour low and high are $0.520 and $0.539 respectively. Trading volumes in the last 24 hours increased by 40%.
Also Read: US SEC Faces Investigation Over Prometheum’s Plans to Store ETH
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
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