A lawmaker has called on the U.S. Securities and Exchange Commission (SEC) to redirect its focus on tackling fraudulent activities in the cryptocurrency industry following a recent court decision regarding Ripple. The lawmaker hopes that the SEC will concentrate its enforcement efforts on “bad actors” who commit serious offenses such as fraud and market manipulation. The court ruled that XRP was not a security when sold on the secondary market but considered it a security when sold to institutional investors. The decision is seen as having potential implications for future legal cases. The lawmaker, who is also a member of the Congressional Blockchain Caucus, stated that the SEC’s ability to create laws as it goes along may be limited by the persuasive authority of the court ruling. The SEC chairman responded by stating that they are still assessing the court’s opinion. No deadline was set for the SEC to respond to the lawmaker’s letter.
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