Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), has expressed his disappointment with a recent ruling in the SEC’s ongoing case against Ripple. Last week, Federal district judge Analisa Torres ruled that programmatic sales of XRP to public buyers did not violate securities laws, much to the chagrin of Gensler and the SEC.
In response to the ruling, Gensler expressed his disappointment during a speech at the National Press Club, stating that the commission is considering the option of a legal appeal to challenge the decision. Gensler emphasized that the SEC is thoroughly assessing the situation and exploring all available options.
Although disappointed with the judge’s decision regarding programmatic sales, Gensler highlighted a positive aspect of the ruling. He expressed his satisfaction that the judge recognized institutional sales of XRP as unregistered securities sales. This acknowledgment affirms the SEC’s position that certain activities within the crypto market must adhere to securities regulations.
During his speech, Gensler also took the opportunity to reiterate the SEC’s stance on the crypto market. He emphasized that the commission has consistently communicated its position through enforcement actions, rather than relying solely on rulemaking. Gensler addressed concerns from the public regarding the recent crackdown on the crypto market, explaining that enforcement actions have been an integral part of the SEC’s regulatory approach for decades, with insider trading being just one example.
The SEC’s case against Ripple has been closely watched by the crypto community and has significant implications for the broader industry. Ripple, the company behind the XRP cryptocurrency, has been locked in a legal battle with the SEC since December 2020. The SEC alleges that Ripple conducted an unregistered securities offering worth over $1.3 billion by selling XRP to retail investors. Ripple, on the other hand, argues that XRP is a digital asset and not a security.
With the recent ruling favoring Ripple’s position on programmatic sales, the case has taken an unexpected turn. It remains to be seen whether the SEC will proceed with a legal appeal to challenge the ruling and potentially redefine the regulatory landscape for cryptocurrencies in the United States.