With the recent court ruling determining that XRP is not a security, Wyoming Senator Cynthia Lummis urged lawmakers to act and deliver a comprehensive crypto regulatory framework that protects investors while promoting innovation.
In a statement shared on Twitter, Senator Lummis applauded the recent decision by Judge Analisa Torres that XRP does not meet the Howey test definition of a security.
However, she highlighted that the verdict further underscores the need for Congress to provide clarity around digital assets through legislative action.
According to the Senator and long-time crypto advocate, a clear regulatory framework would ensure investors are adequately protected while innovation in the space is allowed to thrive.
Senator Lummis specifically pointed to the Lummis-Gillibrand bill – a legislative proposal she co-introduced with Senator Kirsten Gillibrand – as an example of an approach that would clarify the regulatory environment for digital assets in line with the Howey test as interpreted by the New York court.
The verdict in the SEC’s lawsuit against Ripple Labs carries significant implications for the broader crypto industry. Without regulatory clarity from Congress, entrepreneurs and investors lack certainty, hindering growth.
Though lawmakers are increasingly aware of the potential for innovation and financial inclusion offered by cryptocurrencies, the actions of policymakers like Senator Lummis will play an important role in shaping the regulatory landscape going forward.
In her statement, Senator Lummis calls for a forward-thinking approach to crypto rules that balances consumer protection needs while preserving the opportunities presented by this emerging technology.
This article is based on the original news published on CoinGape.
