Loading...

SEC Chair Gary Gensler expresses disappointment over Ripple case verdict

House Committee puts SEC Chief's crypto stance under fire

Most read

Loading Most Ready posts..

TL;DR

  • SEC Chair Gensler shared mixed views on the Ripple case, approving protection for institutional investors but disappointed about retail investors’ ruling.
  • Gensler stressed the SEC’s ongoing rulemaking activities, countering criticism of regulation by enforcement.
  • The SEC is committed to maintaining compliance and investor protection within the cryptocurrency sector.

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler voiced mixed reactions on Monday regarding a recent court decision about Ripple Labs Inc. Speaking at a National Press Club event in Washington DC, Gensler affirmed his approval of the ruling that institutional sales of Ripple’s tokens did breach federal securities laws, emphasizing the need for protecting investors at that level.

Conversely, Gensler expressed disappointment over the part of the judgment that declared Ripple’s token sales to retail investors on public cryptocurrency exchanges as not qualifying as securities under federal laws. This perspective reflected the court’s view that speculative investors did not have a reasonable expectation of profits stemming from Ripple’s entrepreneurial or managerial efforts.

“We’re pleased with that decision recognizing the importance of protecting investors on the institutional investors. While disappointed on what they said about retail investors, we’re still looking at it and assessing that opinion.”

Gary Gensler, SEC Chair

SEC Chair treads cautiously amid ongoing litigation

Gensler remained tight-lipped on the subject of spot-bitcoin Exchange-Traded Funds (ETFs), citing ongoing litigations and the necessity for him, in his role as the SEC Chair, to refrain from preempting the outcomes of the various applications pending before the regulatory body.

When probed on the seeming propensity of the SEC to lean towards enforcement regulation, as opposed to rulemaking like its European counterpart, Gensler maintained that his agency had indeed engaged in some rulemaking activities. He highlighted instances of “notice and comment rulemaking” and “special purpose broker-dealer” licensing.

Despite his disappointment over certain aspects of the Ripple case, Gensler reasserted the SEC’s dedication to upholding investor protection standards. He pledged the SEC’s continued commitment to bringing enforcement actions and encouraging crypto firms to register.

“We’re 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,” Gensler concluded.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

Stay on top of crypto news, get daily updates in your inbox

Related News

Cryptopolitan
Subscribe to CryptoPolitan