Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), remained tight-lipped during an interview regarding the agency’s next course of action following Judge Analisa Torres’ Summary Judgment in favor of Ripple in the XRP vs SEC lawsuit.
In a segment on Bloomberg TV, Gensler skillfully dodged questions about whether the SEC plans to appeal the ruling, emphasizing that the agency has yet to make a decision. His comments come after expressing disappointment over the XRP ruling, with the SEC publicly stating its intention to review the judgment in the Terraform Labs lawsuit.
XRP Ruling Overview
On July 13, 2023, Judge Torres ruled that the XRP token is classified as a security solely when selling to institutional investors, while sales to retail investors are not in violation of federal securities law. This ruling led to major crypto exchanges, such as Coinbase, relisting the XRP token on their platforms.
Gensler’s Evasiveness Raises Questions
Despite demands for clarity, Gensler refrained from commenting on the XRP ruling, stating that the SEC is still in the midst of deliberations regarding the Summary Judgment.
However, he reiterated his belief that the cryptocurrency market at large continues to disregard securities laws, irrespective of the XRP ruling. The market responded with some correction to the XRP price, which had initially soared to $0.80 following the favorable ruling earlier in the month.
Bloomberg TV just interviewed Gensler for ~10 minutes. Obviously crypto was a topic. But Gensler didn't really give a ton of meaningful or new insight. He *mostly* refused to discuss specifics for the ripple case or for #Bitcoin ETF filings. Good job @kaileyleinz & @daniburgz pic.twitter.com/rynbfeOHto
— James Seyffart (@JSeyff) July 27, 2023
Uncertainty Surrounding XRP Ruling Appeal
Experts have speculated on the potential actions the SEC may take in response to the XRP ruling, leaving investors uncertain about Ripple’s victory in the lawsuit’s final judgment. XRP attorney John E Deaton, who represents numerous token holders, clarified that an appeal from the SEC does not necessarily indicate a setback for Ripple.
Additionally, Stuart Alderoty, Ripple’s Chief Legal Officer, asserted that once XRP is deemed not to be a security, the SEC will lose its jurisdiction over the token’s trading.
As the crypto community eagerly anticipates the SEC’s next move, the future of XRP and its regulatory status remains uncertain.
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