Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), recently shared his thoughts on the court ruling regarding the SEC’s lawsuit against Ripple. During a 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 in the industry.
Gensler responded by expressing his satisfaction with the court’s decision in recognizing the importance of protecting institutional investors and highlighting the aspect of fair notice. However, he also mentioned disappointment regarding the court’s stance on retail investors. The SEC is currently assessing the opinion and examining its implications.
Later in the day, during an interview with Yahoo Finance, Gensler reiterated his previous comments. He acknowledged that many crypto exchanges viewed the ruling as a win and were relisting XRP. When asked about the possibility of the decision setting a precedent, Gensler declined to answer due to ongoing litigation. However, he mentioned that crypto platforms often combine various services that would not be allowed in other parts of the capital markets.
Regarding the idea of writing customized rules for cryptocurrencies, Gensler stated that it was too early to consider such a step since the court ruling had only taken place a few business days prior. He pointed out that the agency already had rules in place defining what it means to be a securities exchange.
When asked about proposed Republican legislation that would introduce a decentralization test for crypto assets, Gensler mentioned that he would save his comments on draft legislation for direct inquiries from members of Congress.
Gensler concluded by discussing the concept of decentralization in the crypto industry. While acknowledging the original vision of Satoshi Nakamoto in moving value without intermediaries, he noted that centralization exists in many areas of the industry, emphasizing that the field is not immune to the economics of finance.
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