Gensler’s Disappointment with Ripple Verdict
The Securities and Exchange Commission (SEC) Chair, Gary Gensler, expressed his dismay on July 17 following Ripple’s partial victory against the regulator. Gensler criticized the judge’s ruling that Ripple’s XRP token was not a security when it was sold to retail investors on exchanges.
Despite the ruling being lauded as a win for the broader crypto industry and retail investors, Gensler conveyed his disagreement.
Continuation of Crypto Crackdown
Gensler, however, took solace in the decision that recognized the protection of institutional investors. “While disappointed on what they said about retail investors, we’re still looking at it and assessing that opinion,” he stated during an event at the National Press Club.
Despite stuttering and appearing lost for words at times, he firmly affirmed the SEC’s intent to bring non-compliant firms into the fold of regulations.
“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 stated.
Implications of XRP Ruling
The ruling that sales of XRP to retail traders did not constitute securities transactions is beneficial news for other crypto assets that the SEC had tagged as investment contracts.
Back in 2020, the SEC accused Ripple of illegally raising $1.3 billion through an unregistered securities sale of XRP. Contrary to this, Judge Analisa Torres ruled that XRP was not a security in the secondary market sale, stating that Ripple’s algorithmic sales system for XRP on exchanges and trading platforms was not a securities offering.
XRP Price Surge and Crypto Market Impact
The Ripple victory reflected positively on XRP prices, with a skyrocket of over 80% late last week. Despite a slight dip, the token holds its value in the mid-$0.70 area.
Furthermore, the Ripple ruling also sparked an uptick in several other crypto assets, including Cardano (ADA), Solana (SOL), Polygon (MATIC), and Stellar Lumens (XLM), all of which have previously been labeled securities by the SEC.