XRP Lawsuit: SEC Chair Says He’s ‘Disappointed’ at Non-Security Tag

Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC) has expressed his disappointment with the “non-security” label attached to Ripple affiliated digital currency XRP by Judge Analisa Torres in the ongoing case between Ripple and the SEC. 

Gensler made the statement while speaking at the National Press Club Headliners Luncheon, where he was asked about the implications of the recent court ruling on the crypto industry. 

SEC Focuses on Investors’ Protection

Gensler reiterated the SEC’s mission to protect investors and promote capital formation. While he expressed satisfaction with the court’s ruling on fair notice, he voiced his disappointment that the sales of XRP on exchange platforms is not classified as a security.

However, Gensler also indicated that the SEC is still assessing the court’s opinion, implying that the case is not yet resolved. This suggests that there may be further developments or considerations by the SEC regarding XRP and its regulatory classification.

In addition to expressing his disappointment with the “non-security” label attached to XRP, the SEC Chairman also acknowledged the agency’s engagement in rule-making procedures during the Luncheon. 

When questioned about the SEC’s focus on regulation by enforcement, he mentioned that the agency has been involved in rule-making initiatives related to brokerage dealers, exchanges, and safe custody protection. Gensler’s statement suggests that the SEC is actively working on developing and implementing clearer regulatory frameworks for various aspects of the crypto industry.

XRP Lawsuit: Implications of Gensler’s Statement

The outcome of the Ripple vs SEC lawsuit has broader implications for the classification of other cryptocurrencies under US securities laws. The ruling, in this case, could set a precedent for future regulatory actions and influence how other cryptocurrencies are treated. 

Gensler’s disappointment may signal a continued commitment by the SEC to classify certain digital assets as securities, potentially leading to increased regulatory scrutiny and compliance requirements across the industry.

Additionally, Gensler’s statement could also influence market dynamics and investor behavior. If investors perceive Gensler’s disappointment as a signal of potential regulatory actions or increased scrutiny, it may lead to market volatility or caution regarding XRP and other cryptocurrencies. 

However, it is important to note that Gensler’s statement does not directly change the court ruling or the ongoing legal proceedings. The ultimate outcome of the XRP lawsuit will be determined by the court in due time.