SEC Chair expresses disappointment over court ruling in Ripple case
The US Securities and Exchange Commission (SEC) expressed their disappointment in a court ruling regarding their ongoing lawsuit with Ripple. The court ruled that Ripple’s cryptocurrency, XRP, was not a security, which went against the SEC’s stance. SEC Chair Gary Gensler stated that while he was pleased with some aspects of the ruling, he was disappointed in what was said about retail investors.
The legal battle between the SEC and Ripple has been ongoing for two years, with the central issue being whether XRP should be classified as a security. The recent court ruling provided some clarity by declaring that XRP was not a security, contrary to the SEC’s position.
Gensler’s disappointment stems from the court’s statements about retail investors, though the specifics of these statements were not mentioned. The ruling that XRP sold on cryptocurrency exchanges was not considered a securities offering could have broader implications for the digital asset industry as a whole.
The SEC has traditionally taken an enforcement-first approach to regulating the cryptocurrency industry. However, this ruling challenges that approach and raises questions about the agency’s stance. It is seen as a potentially landmark ruling that could impact future regulatory actions in the industry.
While Gensler expressed his disappointment, he also acknowledged some aspects of the ruling that he found positive. However, the specific details of these positive aspects were not disclosed.
Overall, the court ruling regarding XRP being not a security has disappointed the SEC, particularly in relation to the court’s statements about retail investors. This ruling challenges the SEC’s enforcement-first approach and could have significant implications for the digital asset industry. The SEC is still discussing the ruling, indicating that further actions or responses may be taken in the future.