SEC Chair Gary Gensler has stated that he is willing to adapt his regulatory agenda in response to court decisions, saying “If the courts adjust, we adjust.” However, his comments have been met with skepticism from some in the cryptocurrency industry, particularly those involved in the ongoing lawsuit between the SEC and Ripple.
In an interview with the Financial Times, Gensler acknowledged that courts have challenged certain plans the regulator put forward, including a recent appeals court decision that struck down measures requiring greater disclosures from private equity groups and hedge funds.
The court ruled that the SEC was overstepping its authority, and Ripple Chief Legal Officer (CLO) Stuart Alderoty called out Gensler and the regulatory body for this move. According to Gensler, the SEC is still reviewing the ruling internally.
Ripple CLO Slams SEC Again
However, Alderoty doubts that Gensler will adjust his stance on cryptocurrency regulation in response to court rulings. Alderoty noted that the courts are not “adjusting” the law, but rather finding that the SEC has exceeded its authority.
Ripple has had three consecutive victories against the SEC, which many in the crypto community hold as a demonstration of the flaws in the SEC’s approach to cryptocurrency regulation.
In July 2023, the court ruled that non-institutional XRP sales did not constitute securities offerings, and XRP itself was not a security. Following this, the SEC has not adjusted its strategy, labeling other cryptocurrencies as securities and attempting to collect $2 billion from Ripple for alleged securities law violations.
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Despite these victories, Ripple and the XRP community are still awaiting an adjustment in the SEC’s stance on cryptocurrency regulation. However, legal experts believe that the SEC will likely appeal the ruling once the lawsuit is concluded, rather than adjusting its stance.
Gensler’s comments suggest a willingness to adapt to court decisions. The cryptocurrency industry will watch his actions to see if any practices change. The ongoing lawsuit between the SEC and Ripple and the SEC’s decision after the lawsuit has significant implications for the regulation of cryptocurrency, and the industry is eagerly awaiting a resolution.
One user on X called for Gensler to be removed, and called the SEC a bad-faith regulator. Prominent figures like John Deaton have also called for Gensler’s removal. However, this outcome is unlikely, and the outcome of this lawsuit and Gensler’s future behavior will determine how true he is to his words.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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