U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler recently reportedly expressed dissatisfaction with a court ruling related to the XRP token. bloomberg upon July 17th.
Gensler said he was “disappointed” by Judge Analisa Torres’ declaration that the sale of XRP tokens on retail exchanges does not constitute an offering of securities. A judge ruled on July 13 that XRP programmatic sales and free giveaways are not securities.
Conversely, Gensler said he was satisfied with the judge’s ruling regarding Ripple’s XRP token sale to institutional investors. Judge Torres ruled that, unlike retail sales, Ripple’s institutional sales were sales of unregistered securities. The company provided assets directly to these investors through written agreements.
Gensler also said the SEC is “still reviewing and evaluating its opinion,” suggesting that his agency is considering the outcome of the case.
He also revealed that the SEC will work with other companies. He said:
“We will continue to strive to bring potentially non-compliant companies into compliance without prejudice to any company, and will work to ensure that public investors are protected. ”
Gensler made the remarks at an event hosted by the National Press Club, according to Bloomberg’s latest report.
XRP Benefited From Lawsuit Outcomes
The SEC originally sued Ripple in 2020, alleging that the company violated regulations by selling XRP without a securities registration. Ripple did not settle with the SEC, instead opting to fight the SEC in court.
Following the favorable verdict against Ripple, the XRP token has made a significant comeback. In the week ending July 17, XRP surged more than 50%, consolidating its position as the fourth largest asset by market capitalization.
Ripple CEO Brad Garlinghouse has also been positive about the outcome, with at least one exchange, Coinbase, deciding to relist XRP.
However, Ripple’s legal challenges may not have been fully resolved, and there is speculation that the SEC may pursue further legal action despite recent setbacks. Former SEC Commissioner John Reed Stark said the decision could be overturned.
Gary Gensler’s post about being “disappointed” by Ripple’s ruling on retail investors first appeared on CryptoSlate.