Chair Gensler says SEC reaction to Ripple decision is mixed, still under consideration

Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), was questioned twice about the Ripple decision shortly after the ruling. In response, his main message was that he preferred not to discuss it.

During his talk on artificial intelligence at the National Press Club on July 17, Gensler was asked about the impact of the ruling on his stance on cryptocurrency and the need for federal legislation to clarify regulatory oversight. He stated that the SEC was pleased with the court’s decision regarding the protection of institutional investors and fair notice. However, he expressed disappointment in how the ruling affected retail investors and mentioned that they were still evaluating the opinion.

Later in the day, during an interview with Yahoo Finance, Gensler reiterated his previous comments about being pleased with the court’s recognition of a token for institutional investors as a security but disappointed with its implications for retail investors. When asked about the potential precedent set by the decision and the relisting of XRP on various crypto exchanges, Gensler declined to answer due to ongoing litigation.

Regarding the possibility of writing customized rules for crypto, Gensler stated that it was too early to consider, as the ruling had just taken place a few days prior. He also mentioned that the SEC already had existing rules in place regarding securities exchanges.

On the topic of proposed Republican legislation introducing a decentralization test for crypto assets, Gensler refrained from commenting on draft legislation and said he would address it directly with members of Congress when asked.

Gensler touched on the idea that the cryptocurrency industry, despite being founded on the concept of moving value without intermediaries, shows signs of centralization in certain areas, acknowledging that economics still plays a significant role in the field.

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