Two American lawmakers believe that the recent ruling in the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple highlights the need for Congressional legislation in the cryptocurrency space. The ruling stated that Ripple’s automated sales of XRP did not constitute security offerings, but sales to institutional buyers did. This contradicts the SEC’s claim that most digital assets are securities. The lawmakers argue that without clear regulations, the digital asset market will continue to operate outside the SEC’s regulatory framework, leaving consumers unprotected. They believe that Congressional legislation is the only solution to provide a much-needed regulatory framework and protect investors in the industry.
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