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XRP has taken center stage in the discussion of cryptocurrency regulation in the United States. An interpretation has emerged that the new draft bill from Senate Republicans could impact XRP's regulatory status.
According to crypto media outlet CoinGape on September 14 (local time), US Senate Republicans unveiled a new draft of the US cryptocurrency market structure bill ahead of a procedural vote on Tuesday. Pro-XRP lawyer Bill Morgan analyzed that the new wording could serve as a basis for separating Ripple's XRP holdings from XRP's regulatory status. He stated, “According to this latest draft, XRP will be a crypto commodity in the secondary market, regardless of how much XRP Ripple holds.”
However, neither XRP nor Ripple are directly specified in the bill. Morgan's argument is an interpretation applying the network token provisions in the draft to XRP. The draft defines assets that exist in digital form, are transferable between individuals, and are recorded on a decentralized ledger system as 'digital commodities'. This definition also includes network tokens that qualify as ancillary assets.
The wording regarding secondary market transactions is also a significant point for XRP. The draft stipulates that the sale or distribution of network tokens conducted before the enactment of the law shall not be treated as involving securities transactions under certain provisions of federal securities law. CoinGape explained that this provision is a key basis supporting Morgan's interpretation of XRP. The draft focuses on the nature of the token itself and its transactions, and does not stipulate that regulatory status automatically changes solely based on the issuer's holdings.
Regulations related to exchange listings are also included. According to the draft, a specific asset cannot be prohibited from listing on a digital commodity exchange solely because it is a network token. There are provisions that classify certain entities holding a certain stake as related parties, applying restrictions or disclosure obligations. However, there is no explicit statement that an entity involved in issuance, like Ripple, cannot be treated as a digital commodity in the secondary market simply because it holds a large quantity of tokens.
The new draft is not a bill that directly confirms XRP's regulatory status. Neither XRP nor Ripple are named in the bill. However, Morgan's analysis suggests that the wording distinguishing between network tokens and secondary market transactions could be an important basis for future interpretations of XRP regulation.
[Article Key Summary]
-XRP's regulatory status is once again drawing attention as US Senate Republicans unveiled a new draft of the US cryptocurrency market structure bill.
-Bill Morgan interpreted that XRP in the secondary market could be treated as a crypto commodity regardless of Ripple's XRP holdings.
-Neither XRP nor Ripple are directly specified in the bill, and Morgan's argument is an interpretation applying the network token provisions to XRP.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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