SEC has been at war with Ripple as there is a lawsuit going on based on the dispute that XRP in the eyes of SEC is a security and not a cryptocurrency, but Ripple begs to differ. The ultimate ruling of the lawsuit has not been given out yet as the case is still pending, and SEC has not been able to provide a very strong defense while XRP, on the other hand, has done a pretty good job in presenting their case. Pat Toomey, a US senator, has requested the Securities and Exchange Commission to disclose the legal status of all the cryptocurrencies the Commission believes to be securities. This will be able to not only help the current situation going on with Ripple but also provide a clear insight as to what are the rules or metrics according to which a cryptocurrency is classified as a security or not.
Crypto Regulatory Guidance is Necessary
Toomey was on the recent Squawk Box episode and has raised his voice in favor of cryptocurrencies by explaining them as a significant and important technology for finance. Not only this, but he has also urged the Commission to explain the criteria on which a certain cryptocurrency becomes the security and the criteria where crypto has generally been accepted the way it is.
Toomey thinks that this will not only help to smooth things out for the recent lawsuit going on between SEC and XRP but will also provide enough information to develop regulatory laws around this very issue. Toomey thinks that there should be regulations and there should be laws with which all cryptocurrencies and digital assets comply.
But at the same time, he believes that there should exist a hint of transparency and clear objectivity within the regulatory authorities so that the regulation and digital asserts could go hand in hand for the betterment of the finance world. No one else is going to take notice of this except the Securities and Exchange Commission, and to reach there, the Commission must act now and clear out this jumble of fusion at once.