Caroline D. Pham, an American attorney serving as one of the five commissioners at the United States Commodity Futures Trading Commission (CFTC), met with Ripple CEO Brad Garlinghouse. The meeting cheered XRP fans and raised questions about the prospect of the token being treated as a commodity and falling under the supervision of the CFTC.
CFTC Commissioner’s Meeting With Brad Garlinghouse
According to a Sept. 19 tweet by CFTC Commissioner Caroline Pham, visiting Ripple Labs offices in San Francisco was part of her “learning tour” involving the crypto space.
Brad Garlinghouse later noted that the meeting with the commissioner was about “public-private engagement”, possibly referring to a private company like Ripple Labs engaging with regulators in the U.S.
Pham’s meeting with the Ripple chief had many observers comparing the CFTC’s approach to engaging with crypto projects with that of the Securities and Exchange Commission (SEC). It’s worth pointing out that the SEC has been heavily criticized for its ambiguous approach. CFTC commissioner Pham has also previously slammed the agency for indulging in “regulation by enforcement.”
Could XRP Be Classified As A Non-Security Commodity?
Others on social media suggested the timing of the commissioner’s visit is no coincidence. They even speculated that XRP could come under the CFTC’s purview, which means the agency would become the token’s sole regulator.
SEC chair Gary Gensler has continually restated his belief that most crypto tokens have the hallmarks of securities. In July, the SEC announced that it was lodging suits against nine ICO-era crypto projects for selling noncompliant securities; the regulator is also reportedly probing leading U.S. cryptocurrency exchanges, including Coinbase and Binance, for listing these tokens.
The SEC and Ripple recently filed motions for summary judgment in the ongoing lawsuit over whether XRP sales broke securities laws. The two parties want District Judge Analisa Torres to give an immediate verdict without pushing the case forward to a trial.
Ripple’s Garlinghouse remarked after the filings that the SEC “isn’t interested in applying the law”. He believes the agency is hell-bent on remaking it to “expand their jurisdiction far beyond the authority granted to them by Congress.”
Ripple has been locked in a court case with the SEC since December 2020, trying to establish the status of XRP. Whether XRP is soon recognized as a commodity by the U.S. courts remains to be seen.
Billionaire hedge fund founder Ray Dalio has stepped down as chief executive of Bridgewater Associates, according to a transfer of voting rights on September 30. Bridgewater’s co-chief executive explained on Tuesday that “Ray no longer has the final word,” in regard to the hedge fund’s future. Hedge Fund Giant and Bridgewater Associates Founder Ray Dalio […]
In Singapore, LBank, a major cryptocurrency exchange, participated in Token 2049 as a sponsor and exhibitor. At the Token 2049 venue, LBank was welcomed with open arms and went on to host a prosperous after-party. Singapore, one of the burgeoning major crypto hubs, welcomed a diverse crowd of enthusiasts and provided LBank with a beautiful […]
Back at the beginning of the year, some notable celebrities had been named in a lawsuit over the alleged Ethereum Max (EMAX) scam. These celebrities included reality star Kim Kardashian, boxing legend Floyd Mayweather, as well as former professional athletes Paul Pierce and Antonio Brown. The class action lawsuit had accused the celebrities of pumping […]
According to a filing published by the U.S. Bankruptcy Court for the Southern District of New York, the crypto lending firm Celsius has been given a final bid deadline of October 17, 2022. Following the bankruptcy court’s final bid deadline, a sale hearing is scheduled for November 1. A report published last week noted that […]
Ever since losing around 80% of its value from its all-time high, Bitcoin has been questioned as a store of value and a digital equal to gold. The digital currency still records the best performance for any asset across the last decade, but critics are fast to point out past year’s losses. Related Reading: Crypto […]
Bitcoin (BTC) accumulation is seeing a massive surge as it rises to levels last seen in 2015.