The US Senate Banking Committee has scheduled a hearing focusing on the regulation of the cryptocurrency market. Ripple's CEO Brad Garlinghouse and other industry representatives are expected to participate.
Objectives of the Hearing and Proposed Legislation
The hearing will take place on July 9 at 10:00 a.m. ET and will focus on new legislative proposals introduced by Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Thom Tillis. These Republicans aim to establish clearer distinctions between digital assets classified as securities and those regarded as commodities.
Background on Ripple and Regulatory Conflicts
Garlinghouse's inclusion in the hearing comes amid ongoing legal disputes between Ripple and the SEC. Attorney John Deaton, representing thousands of XRP holders, emphasizes that Ripple's interactions with various federal agencies since 2013 highlight the ongoing regulatory confusion in the sector.
Conflicting Government Positions on XRP
In 2019, the Financial Stability Oversight Council published a report referring to XRP as a virtual currency. Despite this, the SEC filed a lawsuit against Ripple in December 2020, alleging that all XRP sales since 2013 constituted unregistered securities offerings. Garlinghouse's testimony at the hearing is expected to stress the need for a unified regulatory framework.
The Senate hearings will provide an important platform for discussion and may contribute to the establishment of clearer and more consistent regulatory norms for the cryptocurrency industry.
