Representative Patrick McHenry, Chairman of the House Financial Services Committee, and Representative GT Thompson, Chairman of the House Agriculture Committee, have jointly issued a statement on the court ruling this week regarding the SEC’s lawsuit against Ripple and its issuance of XRP.
McHenry and Thompson said the decision, which is being viewed as favorable for Ripple, underscores the need for Congress to craft legislation for digital assets or crypto.
“The ruling gives large institutional investors greater protections than everyday Americans. Outcomes like this are what happens when regulators force courts to make policy instead of Congress. Our comprehensive market structure legislation will give all investors, customers, and market participants the same longstanding protections found in traditional financial markets,” said the Representatives.
McHenry and Thompsaid said the ruling aligns with what Republicans have been stating. There is a limit to the SEC’s reach.
“According to the court, digital assets may not be inherently securities, but can be offered as part of an investment contract in certain circumstances, which our legislation acknowledges. Gary Gensler’s SEC cannot continue to pursue its regulation by enforcement approach, which only harms investors and creates uncertainty,” they said.
The House is currently working on comprehensive legislation addressing crypto. The goal is to tackle the current regulatory gaps in oversight of the emerging sector. McHenry and Thompson said they are committed to robust consumer protection.
“We look forward to advancing this legislation out of our respective committees this month.”
