Ripple’s Chief Legal Officer, Stuart Alderoty, said that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler went beyond what the law allows him to do after Gensler told the Financial Times that the SEC was adjusting to recent court setbacks.
Gensler is still determined to regulate the cryptocurrency business, even though he has lost in court. Judge Analisa Torres said in July 2023 that secondary sales of XRP tokens linked to Ripple were not securities.
Ripple Impact SEC Policy
This ruling has not had much of an effect. Some people think that the SEC might not appeal the decision so that it doesn’t become more important in the courts.
Grayscale won a significant court case against the SEC in August 2023, which led to the approval of several spot Bitcoin ETFs in January. The SEC also recently allowed multiple spot Ethereum ETFs, which is a sudden change in policy.
Gensler told the Financial Times that he was still worried about how thousands of cryptocurrency coins were not properly disclosed. He also talked about how common fraud is in the industry by saying at the Bloomberg Invest Summit in New York that many stars in the field are “either in jail, about to go to jail, or awaiting extradition.” In response, Brad Garlinghouse, CEO of Ripple, said that Gensler had failed to stop the FTX fraud.
