Caroline Pham, one of the commissioners of the Commodities Futures Trading Commission, believes that Ripple’s...
Caroline Pham, one of the commissioners of the Commodities Futures Trading Commission, believes that Ripple’s recent partial victory has paved the way for regulatory clarity in the United States regarding cryptocurrencies.
In an interview with Bloomberg TV on July 17, Commissioner Pham expressed her optimism that significant court decisions on the classification of crypto assets would eventually bring about regulatory clarity.
Commissioner Pham emphasized that she anticipated participating in regulatory working groups and hoped for collaboration among various U.S. regulators, including the Securities and Exchange Commission (SEC), to develop a comprehensive and holistic approach to crypto regulation.
Pham’s remarks came shortly after Ripple, a San Francisco-based fintech firm, achieved a crucial partial victory in an ongoing court battle against the SEC.
READ MORE: Ex-Federal Prosecutor Surprised by Potential SEC Appeal in Ripple Case
The SEC had accused Ripple of selling unregistered securities. However, on July 14, Judge Analisa Torres of the Southern District of New York ruled that XRP, Ripple’s cryptocurrency, was not a security when sold to retail investors on digital asset exchanges.
The ruling received a negative response from SEC Chair Gary Gensler, who expressed disappointment during a press conference on July 17.
Gensler had previously indicated that, apart from Bitcoin, he considered every digital asset to be a security, although the SEC has not formally made the same declaration.
Despite the setback, Gensler affirmed the SEC’s commitment to pursuing enforcement actions in light of Ripple’s recent legal victory.
Commissioner Pham also highlighted the significance of tokenizing real-world assets (RWAs).
She identified “real opportunities” to modernize financial markets by leveraging blockchain technology to tokenize money market funds.
Notably, traditional finance companies have been increasingly engaging with real-world asset protocols, leading to several RWAs outperforming decentralized finance (DeFi) assets in recent times.
In summary, Commissioner Pham believes that recent court decisions, such as the one involving Ripple, will contribute to regulatory clarity in the United States regarding cryptocurrencies.
She expressed her eagerness to collaborate with other regulators to establish a comprehensive approach to crypto regulation.
Additionally, Pham emphasized the potential benefits of real-world asset tokenization for modernizing financial markets.
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