Wednesday, June 19, 2024
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XRP Lawsuit: SEC Chair Unpleased with XRP Non-Security Status for Retail Investors

The United States Securities and Exchange Commission (SEC) chairman, Gary Gensler, finally breaks silence on the just concluded court procedure between his headed regulatory body and Ripple.

Speaking about the overall impact of the court ruling in global crypto trading at the National Press Club Headliners, in Washington DC, Gensler noted that he respected the court’s final judgment on a fair basis, but showcased his disappointment with the court’s decision to pronounce XRP a non-security asset, despite the token’s sales on different exchange platforms.

Read Also: Attorney John Deaton is Confident Ripple and XRP Victory Will Not Be Revoked. Here’s why

Gensler noted:

“We’re pleased from that decision recognizing the importance of protecting investors on the institutional investors… While disappointed with what they said about retail investors, we’re still looking at it and assessing that opinion.”

SEC Remains Committed To Developing Explicit Guidelines

The SEC chairman hinted that further actions might be taken to fight for its assertion despite the just concluded summary judgment, noting that the SEC is still assessing the court’s verdict to know its next step.

When quizzed about a possible change in SEC’s stance on regulation by enforcement, Gensler maintained that the regulatory body remains actively involved in rulemaking initiatives, especially concerning brokerage dealers, exchanges, and safety custody protection.

The above statement by the SEC boss may indicate that the regulatory commission appears resolute in formulating and implementing explicit guidelines for various aspects of the crypto sphere.

Read Also: Ripple IPO the Next Big Thing? XRP Community Anticipates

Impacts Of The Court Rulings On The Broader Crypto Sphere

Under the United States securities laws, the just-concluded summary judgment might influence the treatment of other cryptocurrencies, culminating in a more unyielding stance to classify other crypto assets as security assets, in addition to increased regulatory scrutiny and strict compliance requirements across the crypto industry, especially in the United States.

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On market dynamics and investors’ behavior, Gensler’s statements are likely to spur a more conservative approach to investing in cryptocurrencies, especially cryptocurrencies that have been implicated by SEC, including XRP, SOL, ADA, etc, hence setting in market volatility.

Bottom Line

Gensler’s statements have not changed the standings in the court.  The final verdict remains the sole responsibility of the court, which we are yet to witness fully.


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Chinedu Agbakwusi
Chinedu Agbakwusi
Chinedu Agbakwusi is a medical student at the prestigious Nnamdi Azikiwe University with sound knowledge of the crypto space. I am here to be a reliable plug for well-researched crypto content ranging from crypto news to market analyses and blockchain inventions.
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