SEC Chair Gary Gensler's Opinion on the Recent Ripple XRP Ruling
SEC Chair Gensler speaks on Ripple's lawsuit outcome, stressing the need for crypto oversight and investor protection.
The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has spoken about a recent court decision related to the SEC's lawsuit against Ripple. This talk took place at the National Press Club on July 17, where Gensler discussed artificial intelligence.
Gensler was asked if this decision changes his view on cryptocurrencies and the need for new laws to oversee the industry. He said he was happy with the decision as it highlights the need to protect institutional investors. However, he was not pleased with the court's views on retail investors. The SEC is still examining this part of the decision.
Later, when speaking to Yahoo Finance, Gensler repeated his views. He mentioned the satisfaction about the court's comments on institutional investors, but disappointment over retail investors.
The Yahoo Finance reporter told Gensler that many crypto exchanges see the decision as a victory and are starting to offer XRP again. When asked if this could set a trend for future decisions, Gensler did not provide an answer due to ongoing legal issues.
Gensler also noted that these crypto platforms offer many services that wouldn't be allowed in other parts of the capital market.
When asked if this makes him rethink creating specific rules for crypto, he said it was too early to say. He reminded that there are already rules about what it means to be a securities exchange.
Gensler was asked about a new law proposed by Republicans that would introduce a test for crypto assets. He said he would only discuss this if asked directly by members of Congress.
Finally, Gensler mentioned that although the person who created Bitcoin (Satoshi Nakamoto) wanted a system without central control, the industry still has many centralized elements. He emphasized that the crypto industry is not immune to the financial rules.
