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Ripple Vs SEC, Torres ruling, role of XRP army in bill
The US House of Representatives voted on the Financial Innovation and Technology for the 21st Century (FIT21) Act, the first step in a US regulatory framework to achieve regulatory clarity for digital assets. The Ripple vs SEC lawsuit, Judge Torres’ summary judgment, and support from the XRP army, including lawyers, played a crucial role in the lead-up to the landmark bipartisan crypto bill, according to pro-XRP lawyer John Deaton’s CryptoLaw .
FIT21 Cryptocurrency Approvals
US passes Financial Innovation and Technology for the 21st Century Act (FIT21), HR 4763, will provide regulatory clarity on the regulation of digital assets and protect consumers, making it the most important crypto bill to date. The Republican-favored encryption bill has become a hot topic of discussion amid this year’s upcoming elections.
Some Democrats also supported the crypto bill that will provide clarity on which regulator, the SEC or the 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.
Ranking Member of the US Chamber Maxine Águas says the bill is not fit for purpose and could create huge loopholes. Democrats spoke out against the crypto bill. Meanwhile, the White House said it will not issue a veto threat against the FIT for the 21st Century Act if it passes the House.
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Mentions of Ripple Vs SEC in part of FIT21
CryptoLaw, founded by Deaton Law Firm, said the Ripple vs SEC lawsuit, Judge Torres’ ruling in the case, and relentless pressure from the XRP Army to seek clarity helped address the bill’s creation.
A section in encrypted account aims to clarify the treatment of digital assets sold under an investment contract. “A digital asset sold or transferred or intended to be sold or transferred pursuant to an investment contract is not and does not become a security as a result of being sold or otherwise transferred pursuant to that investment contract,” it says.
Judge Torres stated this in the Ripple versus SEC lawsuit that the token itself is not a security, like programmatic 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 for greater practicality in new technologies.
CryptoLaw stated that the chairman of the SEC Gary Gensler opposes FIT21 because he wants to continue arguing against Judge Torres’ summary judgment.
The House Agriculture Committee criticized Gary Gensler and the SEC for the political nature of their position. It also highlighted that the July 2023 XRP decision was a key development in creating a regulatory framework.
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