23 April, 2024

XRP Lawsuit: Trader Cochran And Senator Lummis Urge Congress For Crypto Clarity

15 Jul, 2023

11 Dec, 2023

Adam Cochran, a prominent crypto trader, also expressed his concerns on Twitter regarding the uncertain nature of the Howey Test, which is used to determine whether an investment qualifies as a security.

In a recent statement, Adam Cochran expressed his perspective on classifying cryptocurrencies as securities. Cochran argued that the distinguishing factor lies in the ability of individuals to participate in governance, which eliminates the reliance on others for profit in a shared venture. According to him, this absence of commonality sets cryptocurrencies apart from traditional securities and reinforces their status as non-securities.

Adam emphasized that the outdated test fails to envision a world where global participation and coordination in ventures is possible, rendering it inadequate. However, the test does acknowledge the importance of expecting profit from the issuer’s efforts.

Senator Cynthia Lummis, a Republican from Wyoming, has taken to Twitter to emphasize the importance of Congress taking decisive action following a recent court ruling that determined the Ripple-associated token XRP is not a security. The ruling by Judge Analisa Torres has brought to light the need for a clear and comprehensive crypto framework.

Senator Lummis underscored the significance of the court ruling and its potential impact on cryptocurrency regulation. She stressed the urgent need for Congress to establish a comprehensive crypto framework prioritizing consumer protection while fostering innovation in the crypto space.

As a staunch supporter of Bitcoin, Senator Lummis emphasized the importance of upholding the Howey Test as a legal precedent. She specifically mentioned the Lummis-Gillibrand bill, a legislative proposal that she and Senator Kirsten Gillibrand introduced. The bill aims to provide clarity in the regulatory environment for digital assets, aligning it with the interpretation of the Howey Test as determined by the Southern District of New York.

Senator Lummis’ call for congressional action holds significant weight, considering the ongoing legal battle between Ripple Labs and the SEC, which has broader implications for the crypto industry as a whole. The outcome of this case could set a precedent for the regulatory treatment of other digital assets within the United States.


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