SEC v. Ripple: Will US Congress provide regulatory clarity in time?

Being composed only by Democrats, the working group might only be able to go so far in its assertions and proposals.

The House Committee on Financial Services has launched a Digital Assets Working Group of Democratic Members, said Congresswoman Maxine Waters (D-CA), the Chairwoman of the committee at the first hearing held by the Task Force on Financial Technology.

“As cryptocurrencies, central bank digital currencies and other digital assets enter the mainstream, the Committee will look at how digital assets have begun to enter many aspects of our lives – from payments to investments to remittances – and consider how to devise legislation to support responsible innovation that protects consumers and investors while promoting greater financial inclusion”, Ms. Waters stated.

“So, I am pleased to announce that I have organized a Digital Assets Working Group of Democratic Members that will examine the issues at hand in the digital assets space.”

The Digital Assets Working Group will focus on making sure there is responsible innovation in the cryptocurrency and digital asset space. Members are meeting regularly with experts and government officials to learn about the challenges and promise of digital assets.

Members plan to work together on legislation and policy solutions on such matters as cryptocurrency regulation, the use of blockchain and distributed ledger technology, and the possible development of a U.S. Central Bank Digital Currency.

Being composed only by Democrats, the working group might only be able to go so far in its assertions and proposals. Still, it seems that the United States Congress is finally moving forward and taking initiative.

The cryptocurrency market cap is currently valued at $1.6 trillion, having reached its all-time high in May, at $2.5 billion. The ecosystem keeps maturing fast and institutions have grown friendlier to the digital assets.

The most high-profile legal case involving the crypto industry at the moment is the SEC v. Ripple lawsuit.

This week, the Judge has extended the period to complete discovery as requested by the SEC, which now has until August 31 to conduct fast discovery, with expert discovery being pushed until October 15.

For a leading company in the digital space, this lawsuit is taking forever. Competition – like Algorand-powered Six Clovers – is flourishing, while prospective clients may be concerned about the legal repercussions.

The blockchain firm also wants to go public once the lawsuit is over. That can only happen if the lawsuit is really over, but a settlement could be costly for Ripple and for its digital asset as it may bottleneck the flow of XRP into the market for years.