Gary Gensler Crypto Hearing: Advantage XRP Holders In Ripple Case?

Crypto Market News: Now that it is well established during the Congressional hearing that there is a general consensus about prevailing confusion about whether a majority of cryptocurrencies are securities or commodities, XRP token holders are starting to believe there could be advantage in the ongoing SEC Vs Ripple lawsuit. U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler faltered in his response to a question on whether Ethereum (ETH) is a security or a commodity during the hearing on SEC oversight. The question was specifically asked by Patrick McHenry, the Chairman of US House Financial Services Committee.

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Chair McHenry took the crypto market by surprise with his initial arguments to begin the hearing on Tuesday. He had grilled Gensler with the specific question on whether ETH is a security or a commodity, to which Gensler tried to give a generic response. McHenry took various examples of the CFTC, a former SEC official and a New York state attorney having conflicting views on the same issue, rightly stating that there is clearly a lack of clarity on the subject not just within regulatory institutions but also the market participants.

How Would Congressional Hearing Help Ripple’s Case

The heated discussion on the supervision of cryptocurrencies and regulatory purview could potentially add support to the Ripple argument in SEC lawsuit. Ripple had been maintaining that in the last few years, XRP tokens were not sold as securities, as against the SEC’s claim of the same. Meanwhile, further Congressional action against the SEC and Gary Gensler could likely add to the case of Ripple’s argument. Congressman Warren Davidson had in the hearing called for restructuring the SEC and the removal of Chair Gary Gensler from his position over abuse of power and failure to protect investors.

Meanwhile, irrespective of the outcome of the Gensler hearing, the XRP community has been hopeful of a victory in the SEC Vs Ripple lawsuit, for which the Summary Judgement is expected to be around the corner.

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