U.S. Securities and Exchange Commission Chairman Gary Gensler has stated that the regulator is “disappointed” with the SEC v. Ripple ruling on XRP regarding retail investors. “We are still looking at it and assessing that opinion,” he affirmed. Gensler also reiterated the SEC’s commitment to enforcing regulations on the crypto industry and ensuring compliance among crypto firms.
Gensler Says SEC Is ‘Assessing’ the Ripple Ruling on XRP
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, commented on the ruling in the SEC v. Ripple case during his remarks at the National Press Club luncheon Monday.
The court ruled last Thursday, as described by Ripple’s chief legal officer, that “XRP is not a security … sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions — to developers, to charities, to employees are not securities.” The Ripple legal counsel noted: “The only thing the court found constitutes an investment contract is past direct XRP sales to institutional clients.”
Gensler was asked: “How does the federal court ruling last week in the Ripple case impact your stance towards digital asset regulation? Does it inject urgency in the need for federal legislation to clarify regulatory oversight of this industry?”
The SEC chief replied: “We are pleased from that decision recognizing the importance of protecting institutional investors and the court’s movement with regard to ‘fair notice.’” He continued:
While disappointed on what they said about retail investors, we are still looking at it and assessing that opinion.
While the crypto community celebrated the Ripple-XRP ruling, there were cautionary voices. Former SEC internet enforcement chief John Reed Stark and lawyer Bryan Jacoutot believe that the ruling rests on shaky ground, warning that the decision could be overturned.
Gensler was also asked: “What’s the next frontier for the SEC crypto enforcement push?” The SEC chair replied: “Our role at the SEC is again protecting the markets, the investing public, [and] the capital formation — and ensuring compliance with the laws in the books as Congress passed them. That’s what we are doing.” He continued:
So what’s next? We are going to continue to try to bring firms that may not be in compliance into compliance without prejudging any one of them and try to ensure that we protect the investing public.
Following the ruling on the Ripple case, several U.S. lawmakers have urged Congress to pass legislation to regulate the crypto industry and uphold the judge’s ruling on the SEC v. Ripple case.
What do you think about the statements by SEC Chairman Gary Gensler regarding the ruling on the SEC v. Ripple case over XRP? Let us know in the comments section below.