Congressman Tom Emmer weighs in on Ripple case: A ‘monumental development’
A flurry of crypto bills have been introduced by lawmakers this year, with Lummis and Gillibrand having dropped one this week
Rep. Tom Emmer | Al Mueller/Shutterstock modified by Blockworks
Less than an hour after the Ripple ruling was handed down, House Majority Whip Tom Emmer wrote on Twitter that the outcome is a “monumental development in establishing that a token is separate and distinct from an investment contract it may or may not be part of.”
The court, while finding that institutional sales of XRP did constitute unregistered securities sales, also ruled that programmatic sales on the secondary market were not.
As for the XRP token itself, the court said it is not “in and of itself a ‘contract, transaction[,] or scheme’ that embodies the Howey requirements of an investment contract.”
The Minnesota Republican screenshotted the above portion in his tweet and highlighted it, saying “let’s make it law.”
Emmer is referring to the Securities Clarity Act, which he reintroduced alongside Rep. Darren Soto, D-Fl., on May 22, 2023.
The proposed legislation, which is bereft of any other co-sponsors outside of Soto, seeks to address the exact issue at hand in the SEC’s case against Ripple. That is, when do crypto assets become securities?
The bill, which Emmer first introduced in 2020, would likely cut down on regulation by enforcement. It argues that “an asset sold pursuant to an investment contract, whether tangible or intangible (including an asset in digital form), that is not otherwise a security under the Act, does not become a security” after a sale or transfer.
Emmer has also tried a more direct approach in changing SEC policy by attempting to oust Gary Gensler, the agency’s chair, from his position. Rep. Warren Davidson, R-Ohio, introduced the bill ordering Gensler’s removal and the SEC’s reorganization as well.
A number of other crypto bills are ping-ponging in congressional limbo this year, with the most recent being the Responsible Financial Innovation Act by Sens. Cynthia Lummis, R-Wyo., and Kristen Gillibrand, D-N.Y.
Among many things, the bill, which was brought to the Senate floor Wednesday, seeks to regulate stablecoins and establish a law enforcement group to monitor the industry.
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