US Securities and Exchange Commission (SEC) Commissioner Hester Pierce, also known as ‘Crypto Mom’, expressed in an interview with Bloomberg last June 21 that the XRP token could be sold as a part of an investment contract without being considered a security token.
‘When we think about a crypto-asset as being security, what we’re doing is we’re saying it’s being sold as part of an investment contract. It doesn’t mean that the asset itself necessarily has to be a security. It means that it was being sold as a security,’ Pierce explained.
However, Pierce’s statement doesn’t reflect on the joint lawsuit released by the SEC on December 22, 2020. In an excerpt from the filed complaint, it says that the SEC regulations regarded the centralized nature of XRP, making it a security asset:
‘The Securities and Trade Fee introduced right this moment that it has filed a motion towards Ripple Labs Inc. and two of its executives, who’re additionally vital safety holders, alleging that they raised over $1.3 billion by unregistered, ongoing digital asset security providing.’
However, according to court documents filed by Ripple Labs on March 4, they did not organize an ICO nor does the XRP token function as a security token since its main use is for cross-border transactions.
In relation to the SEC and Ripple legal battle, the US House of Representative passed the ‘Eliminate Barriers to Innovation Act’ proposed by North Carolina Rep. Patrick Mchenry in April.
The bill mandates the collaboration of the SEC and the Commodity Futures Trading Commission in creating a group that will protect investors in trading digital assets and prevent unclear rulings when it comes to regulating digital assets.
US Rep. Maxine Waters of the Financial Services Committee said on June 16 that the committee formed will be responsible for assessing how CBDCs, digital assets and cryptocurrencies play a major role in reshaping the monetary system. She said that the group will ‘engage’ with regulators and crypto experts to create more awareness among people.
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