The recent SEC Chair Gary Gensler’s testimony before Congress has amplified the uncertainty within the cryptocurrency market, especially for Ripple and XRP. This turbulence came from a contentious interaction between Gary Gensler and the House Financial Services Committee.
Although Ripple has a partial victory against the SEC, Gensler refuses to yield any ground. He emphasized his commitment to pursuing an interlocutory appeal. This stance opposes the beliefs of many people in the crypto industry.
Read Also: Ripple Chief Legal Officer Believes SEC Chairman Will Lie to Congress As Always
Ripple CEO, Brad Garlinghouse, once said the SEC is “out of control and consistently wrong.” The SEC’s stance has also increased uncertainty in the crypto industry.
In August, Judge Torres legally gave the SEC permission to file an interlocutory appeal, giving the regulatory body the chance to present its case to the Second Circuit.
Congressman: Ripple-SEC Lawsuit Far from Over
As shared by Eleanor Terrett, a Fox Business journalist, Congressman Stephen F. Lynch voiced concerns about the SEC’s strategy. He pointed out the pattern of resorting to court battles for individual tokens to determine their classification.
In response, Gensler highlighted the SEC’s intent to continue the legal battle through the interlocutory appeal. However, he did not offer a direct answer to show that the individual lawsuits would not become a pattern.
These recent developments, highlighted by Congressman Lynch, suggest that the XRP lawsuit may take a long time to resolve. In his words, the SEC case against Ripple is “far from over.”
.@RepLynch addresses the July 13th @Ripple ruling, saying he's worried that "we're headed towards a pattern of court battles to determine whether each individual token is a security or not." He asks Gensler for his view.
Gensler does not answer directly but brings up the fact…
— Eleanor Terrett (@EleanorTerrett) September 27, 2023
Notably, the drawing out of the case is something the SEC accused Ripple of a few weeks ago. XRP remained stable after the hearing. However, XRP seems to be trapped In a consolidation phase that may not end well with bad news.
During a separate segment of the hearing, Gensler took a strong stance against certain practices within the cryptocurrency industry, particularly criticizing the commingling of assets, which he regarded as risky and inconsistent with prevailing financial regulations.
Read Also: Attorney Deaton Explains Why SEC Can Only Be Forced To Settle XRP Lawsuit with Ripple
Regarding the SEC’s stance on spot bitcoin exchange-traded funds (ETFs), Gensler confirmed that the agency had not yet decided on a response to the judge’s ruling, which required a reevaluation of the SEC’s position. Gensler emphasized the agency’s respect for the judiciary but did not reveal the agency’s future actions or timing.
Significantly, a substantial portion of the hearing was devoted to topics outside of the cryptocurrency realm, such as discussions on whether the SEC was prioritizing climate and other non-crypto issues.
The meeting exhibited a sharp partisan divide, with Democrats offering support for Gensler while Republicans raised concerns that he was adversely impacting consumers and small businesses with his approach.
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