• SEC chair Gary Gensler has spoken out following Ripple’s partial court victory last week, saying he is „disappointed“ with the ruling.
• The ruling determined that Ripple’s XRP token was not a security when it was sold to retail investors on exchanges.
• However, Gensler said he would continue his crackdown on crypto despite this loss.
Ripple Court Victory
Last week saw a landmark partial victory for cryptocurrency giant Ripple in their legal battle against the US Securities and Exchange Commission (SEC). The ruling determined that Ripple’s XRP token was not a security when it was sold to retail investors on exchanges.
SEC Chair Gary Gensler Responds
SEC chair Gary Gensler has spoken out for the first time since the ruling and expressed his disappointment over the judge’s decision. On July 17, Gensler said he was “disappointed” with the outcome but added that he did agree with the protection of institutional investors mentioned in the ruling. Despite this setback, however, Gensler said he would continue to try and bring firms into compliance with his regulations concerning cryptocurrencies.
Crypto Industry Reacts
The news of Ripple’s victory against one of its biggest opponents has been generally well-received by industry participants who view it as an encouraging sign for wider digital asset adoption due to increased clarity over regulatory requirements for tokens like XRP. This news also serves as a reminder for other blockchain projects that may be under scrutiny from authorities about how they approach offering tokens or services to customers based in certain jurisdictions around the world.
Clarity Over Security Tokens
The court case between Ripple and SEC provided much needed clarity over what could constitute security tokens under US law and served as an important reminder that companies must ensure they are compliant with all applicable regulations before launching any type of offering related to digital assets or services involving them. It is clear from this case and other similar ones across different jurisdictions around the world that authorities are taking action against actors involved in fraudulent activities as well as those who fail to adhere to existing security laws or guidelines set out by central banks or financial regulators.
Conclusion
Overall, while SEC chair Gary Gensler expressed disappointment at Ripple’s victory, it appears that he will continue his crusade against crypto firms which do not comply with established regulations. Furthermore, this case has provided much needed clarity regarding what constitutes security tokens under US law and serves as an important reminder for companies involved in digital asset offerings about ensuring proper compliance before launching their products or services in certain jurisdictions around the world.