U.S. Crypto Regulatory Clarity is on the Horizon, Says CFTC Commissioner

Caroline Pham has declared that Ripple's partial victory in court has set a clear trajectory for crypto regulation in the United States.

by Faruk Imamovic
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U.S. Crypto Regulatory Clarity is on the Horizon, Says CFTC Commissioner

Caroline Pham, one of five commissioners of the Commodity Futures Trading Commission (CFTC), has declared that Ripple's partial victory in court has set a clear trajectory for crypto regulation in the United States. Appearing on Bloomberg TV on July 17, Commissioner Pham affirmed that recent legal decisions relating to the classification of crypto assets are setting the stage for regulatory clarity.

"Last year, I predicted that we would first see regulatory clarity in the courts around the definition of a security. We've witnessed that happening with some major court rulings that have recently been made public," she said.

The key case in question is Ripple's, where Judge Analisa Torres of the Southern District of New York ruled on July 14 that XRP, Ripple's native currency, was not considered a security when sold to retail investors on digital asset exchanges.

Tokenization of Real-World Assets Highlighted

The ripple effect of Ripple's legal battle is not the only topic on Commissioner Pham's mind. She also emphasized the importance and potential of real-world asset (RWA) tokenization.

According to her, the utilization of blockchain technology to tokenize money market funds presents "real opportunities" to modernize the financial markets. In a tweet thanking Bloomberg TV, Pham also pointed out the growing interest among institutional markets and central banks in the tokenization of real assets, such as bonds.

"Thank you @BloombergTV for the opportunity to talk about our important GMAC initiatives! Beyond crypto, institutional markets & central banks are looking at tokenization of real assets like bonds. Today, we heard about international, US & EU developments & key takeaways," Pham shared on Twitter.

Navigating a New Frontier

As Pham's comments indicate, the terrain of cryptocurrency regulation in the United States is beginning to shift, driven in large part by the legal challenges and victories in the crypto sector. However, the tokenization of real-world assets is poised to be another important area to watch.

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