Chair Gensler says SEC reaction to Ripple decision is mixed, still under consideration
United States Securities and Exchange Commission (SEC) chair Gary Gensler has commented publicly about the last week’s ruling on the agency’s suit against Ripple.
Gensler gave a talk on artificial intelligence at the National Press Club on July 17 and was asked about the ruling during the questions and answers afterward. Does the ruling affect his stance on cryptocurrency, and does it “inject urgency into the need for federal legislation to clarify regulatory oversight of this industry,” he was asked. He replied:
Unsurprisingly, the topic arose later in the day when Gensler spoke to Yahoo Finance. Gensler largely repeated himself, saying, “We are pleased that the court addressed […] that a token for institutional investors is a security […] disappointed in the other aspect about retail investors. We are still taking a look at that and considering it.”
Related: Ripple court ruling makes call for regulation 'more compelling and more urgent' — former CFTC chair
A lot of crypto exchanges “feel like this was a real win for them” and are relisting XRP, interviewer Jennifer Schonberger told him. Could the decision set a precedent? “You’re asking good questions,” Gensler replied, before declining to answer, citing ongoing litigation.
JUST IN:SEC Chair Gary Gensler speaks about Ripple XRP ruling for first time, since last weeks court ruling pic.twitter.com/0lOzJEDs1e
But he did say that “these crypto platforms are commingling a number of services that […] we would not allow in any other parts of our capital markets.”
Does it make him reconsider writing customized rules for crypto, he was asked. “It’s too early. This was, like, three business days ago.” He added, “But I would note the agency has rules on the books right now […]
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