Bitcoin Price Stagnant (Sunday’s Market Watch)
October 4th 2020
According to the latest reports, Congressman Tom Emmer introduced the Securities Clarity Act, which is aiming to provide regulatory clarity for digital assets and blockchain networks.
Introducing Securities Clarity Act
This bill would eliminate “fear of additional regulatory uncertainty” for companies that are hoping to distribute digital assets.
This will happen “as long as they have complied with current securities registration requirements or qualified for an exemption,” according to a press release from Emmer’s office.
The online publication the Daily Hodl notes that the new legislation still may not clear up the classification of crypto assets such as XRP.
All kinds of suppositions have surrounded the digital asset as to whether it’s a security or not.
Jake Chervinsky, the general counsel at Compound, posted the following on Twitter.
I struggle to see how it could apply.
Ripple sells XRP, not investment contracts to fund creation of some new asset that may be delivered later (like SAFTs).
And regardless, the bill explicitly doesn’t apply to an asset that is itself “otherwise a security” under Howey . . .
— Jake Chervinsky (@jchervinsky) September 27, 2020
He also said: “. . . so it wouldn’t impact any arguments about whether XRP itself represents an investment contract at the time of sale (Ripple’s promises, purchasers’ expectations, etc.). That is, it should be irrelevant to In re Ripple’s class claims. I’m curious why you think it applies?”
Check out more details on this in the original article by the Daily Hodl. In other recent news, it’s been revealed that Bharath Chari, the spokesman of the newly founded XRP Ledger Foundation (XRPLF), which was established on September 24, denied rumors in an interview with Forbes that Ripple will not invest in the development of the XRP Ledger in the future.