In a recent interview on Bloomberg TV, Caroline Pham, one of the commissioners of the Commodities Futures Trading Commission (CFTC), expressed her belief that the path toward regulatory clarity for cryptocurrencies in the United States has been paved by Ripple’s recent legal victory.
Pham eagerly anticipates participating in regulatory working groups and hopes for collaborative efforts among various United States regulators, including the Securities and Exchange Commission (SEC), to develop a comprehensive and cohesive approach to crypto regulation.
She stressed the importance of a “holistic approach” that takes into account the unique characteristics of cryptocurrencies and their underlying technologies.
This follows Ripple’s recent partial triumph in an ongoing court battle with the SEC. Judge Analisa Torres of the Southern District of New York ruled on July 14 that XRP, the cryptocurrency associated with Ripple, XRP is not a security when sold to retail investors on digital asset exchanges.
This ruling was met with disappointment by SEC Chair Gary Gensler, who expressed his disagreement during a press conference on July 17. Gensler has previously indicated that, apart from Bitcoin, he considers most digital assets to be securities, although his agency has yet to officially adopt this stance.
Meanwhile, Commissioner Pham emphasized the potential of tokenizing real-world assets (RWAs) as a means to modernize financial markets. She believes that leveraging blockchain technology to tokenize money market funds presents real opportunities for innovation and growth.
Overall, Commissioner Pham’s optimistic outlook, coupled with the evolving legal landscape and the potential of RWA tokenization, points toward a more defined and comprehensive regulatory framework for cryptocurrencies in the United States.