Today, the Chairman of the House Agriculture Committee, Glenn “GT" Thompson (PA-15), and the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement regarding the U.S. District Court of the Southern District of New York’s ruling in SEC v. Ripple Labs Inc. et al. and the need for legislative clarity in the digital asset ecosystem to prevent further uncertainty in our financial markets:
"This decision underscores the need for Congress to provide clear rules of the road for the digital asset ecosystem-it’s misguided to think otherwise," said the lawmakers. 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.
“The decision also recognizes what Republicans have said all along: 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.
“Our digital asset market structure bill is essential to filling the regulatory gaps highlighted in this decision. We remain committed to ensuring all Americans have robust protections in the digital asset marketplace. We look forward to advancing this legislation out of our respective committees this month."
Source: House Committee on Agriculture