United States Securities and Exchange Commission Chair Gary Gensler’s Views on Ripple Decision
During a talk on artificial intelligence at the National Press Club on July 17, SEC Chair Gary Gensler addressed the recent ruling on the agency’s suit against Ripple. He shared his thoughts on the ruling’s impact on his cryptocurrency stance and the potential need for federal legislation to clarify regulatory oversight.
Gensler’s Response to the Ripple Ruling
Gensler expressed his satisfaction with the court’s recognition of the importance of protecting institutional investors and its consideration of fair notice. However, he mentioned disappointment regarding the court’s remarks about retail investors. The SEC is currently assessing the opinion and still reviewing its implications.
Later, in an interview with Yahoo Finance, Gensler reiterated his stance. While pleased with certain aspects of the court’s decision, he emphasized that the SEC is still evaluating the ruling’s effect on retail investors.
Potential Precedent and Crypto Platforms
Regarding the relisting of XRP by many crypto exchanges, Gensler declined to comment due to ongoing litigation but acknowledged that these platforms provide various services that would not be permitted in other areas of capital markets.
When asked if the decision might prompt customized rules for cryptocurrencies, Gensler stated it was too early to determine. He pointed out that the SEC already has existing rules defining securities exchanges.
Republican Legislation and Centralization
Gensler was asked about proposed Republican legislation introducing a decentralization test for crypto assets. He refrained from commenting on draft legislation and stated he would save his remarks for members of Congress directly.
Gensler also mentioned Satoshi Nakamoto’s paper on moving value without intermediaries and acknowledged the presence of centralization in the crypto industry. He concluded that the economics of finance play a role in the field.
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