Ripple court ruling makes call for regulation 'more compelling and urgent' - former CFTC Chairman

Former CFTC Chairman Timothy Massad said the SEC and CFTC are unlikely to change their mode of pursuit of enforcement cases, even with a recent ruling in favor of XRP.

Timothy Massad, former chairman of the U.S. Commodity Futures Trading Commission (CFTC), said a Securities and Exchange Commission (SEC) court ruling against Ripple could impact how businesses and lawmakers address crypto, its call for regulatory clarity remains the same.

In a July 7 op-ed with The Wall Street Journal, Massad and former SEC Chairman Jay Clayton suggested that SEC and CFTC lawsuits against crypto firms were "unlikely 'lead to a significant improvement in investor protection and market integrity'. The comments were presented before a federal judge in the SEC v. Ripple case, which ruled apparently in favor of the blockchain company, suggesting that the XRP token was not a security.

Speaking to Cointelegraph on July 17, Massad argued that the court ruling did not necessarily limit the scope of the Howie test – the standard by which the SEC identifies a security – because the judge said investors institutions “reasonably expected that Ripple would use the capital it received from its sales to improve the XRP ecosystem and thereby increase the price of XRP.” Regarding any potential issues with Ripple’s holdings, the former CFTC chairman said the SEC may consider appealing the judge's decision, or lawmakers may intervene.

"This clearly shows that we cannot create a crypto regulatory framework by enforcement alone," the former CFTC Chairman said.

Massad added that he thinks the number of enforcement cases brought by the SEC or CFTC is unlikely to decrease, even though the ruling apparently excludes XRP from their scope. application. He suggested that the two...