November 27, 2023

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Ripple CTO Urges Legislative Clarity on Crypto Regulations

November 30, 2023

David Schwartz's Concerns

Ripple CTO David Schwartz discusses evolving U.S. securities law dynamics and its application to digital assets.

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Lack of Legislation

Schwartz emphasizes the adaptable nature of the Howey test in securities laws, calling for a nuanced, non-"robotic" approach.

Flexibility of Howey Test

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Confusion in Application

Despite court decisions broadening interpretations, confusion persists in applying the Howey test to digital assets, according to Schwartz.

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Call for Legislative Clarity

Schwartz suggests a need for legislative action to provide clarity in regulating digital assets, highlighting the inadequacy of a court-only approach.

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Congressional Involvement

Growing consensus suggests the necessity for a fresh legislative perspective on digital asset regulation, as indicated by Schwartz's tweets.

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Securities Laws Objective

Schwartz discusses the primary aim of securities laws—countering fraud—and the challenges posed by detecting fraud in the securities sector.

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Ripple's Legal Battles

The ongoing debate around the Howey test is illustrated through Ripple's legal battles, with a recent U.S. court ruling on XRP programmatic sales and distributions.

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