“But the Devil Is in the Details”: Pro-XRP Lawyer Reacts to New U.S. Congress Bill to Regulate Crypto

Since the victory recorded by Ripple and XRP against the United States Security and Exchange Commission (SEC) on the 14th of July, the US Congress has been hard at work in its quest to provide a regulatory framework for the crypto industry in the country.

Recall that Mike Flood, a United States House of Representatives member, had earlier hailed Ripple, the San Francisco-based cross-border payments firm, over its victory against SEC, which finally deemed XRP as a digital asset.

In Flood’s remark, the ruling is termed as a “significant triumph for digital assets in the United States and American innovation.”

Flood further described the dismissal of SEC Chair Gary Gensler’s arguments against XRP as a wake-up call for Congress to step in.

Congress Introduces Bill to Regulate Crypto Industry

Finally, a bill to regulate the crypto industry in the United States has been introduced.

As reported on Twitter by Eleanor Terrett, a FOX Business Journalist & Producer, the bill titled, “The Financial Innovation and Technology for the 21st Century Act” was introduced by Glenn Thompson, French Hill, and Dusty Johnson.

According to the report, the bill, when passed into law, will establish a regulatory framework for cryptocurrencies.

Attorney John Deaton Reacts to the New Bill

Since the news of the newly introduced bill broke out, praises have been pouring from the crypto community members, which highlights the impact of the Ripple legal battle against the SEC.

John Deaton, the lawyer representing over 75,000 XRP holders in the lawsuit between Ripple and the SEC, also rated the move as crucial for the United States crypto industry.

Reacting to Eleanor Terrett’s update, Deaton wrote, “Finally the U.S. enters the game.”

However, in a follow-up tweet, Deaton said although the move sounds great, there might still be a problem due to the content of the bill. He said he will take his time to go through the bill thoroughly before sharing his opinion.

John Deaton tweeted, “But the devil is in the details and there may be some evil lurking within. I’ll reserve my opinion until I can digest it all.”

Ripple and XRP Grand Victory against the SEC

There is enough reason for Ripple and the entire XRP ecosystem to rejoice since XRP has been exonerated from the security stereotype. However, there are two phases to the ruling.

As explained by Stuart Alderoty, the Chief Legal Officer at Ripple, as a matter of law, XRP is not a security. Also, the sales of XRP on exchanges are not securities, according to Judge Analisa Torres in her recent ruling.

Moreover, sales of XRP by Ripple executives have also been declared non-securities. XRP distribution to developers, charities, and employees is also deemed not securities.

But the only aspect that needs further attention is that of Ripple’s past sales of XRP to institutional investors. The Judge classified these sales as investment contracts, which implies that the case is yet to end, according to Alderoty.

All the same, the ruling is still a grand win for Ripple since retail investors are now safe from the SEC’s hammer.

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