SEC Chair “Disappointed” By Court Ruling in Ripple Case

Joshua Ramos
Source: CNBC

The US Securities and Exchange Commission (SEC) was “Disappointed” by the court ruling in its ongoing lawsuit with Ripple. Specifically, Chair Gary Gensler expressed his reaction to the decision, while stating that the regulator was still discussing the ruling that took place last week.

The judge had ruled that Ripple’s XRP was not a security in what was an important decision for the industry. Yet, Gensler did state that he was pleased with some of the decisions that were officially reached. However, he maintained his disappointment regarding “what they said about retail investors.” 

Also Read: Ripple XRP Outshines Bitcoin in Trading Activity

SEC Chair Gensler Disappointed in Ripple Ruling

The ongoing legal fight between the SEC and Ripple has been notable for the industry. A two-year conflict has been constant regarding the security status of XRP. A court ruling last week gave some semblance of an answer, stating that Ripple XRP was not a security. Something that certainly goes against the regulators’ statements. 

Accordingly, SEC chair Gary Gensler has stated that he is “disappointed” by the court ruling in the Ripple case. Indeed, Reuters reported statements that the chair had given on Monday. Specifically, he stated that he was “disappointed about what they said about retail investors. 

SEC Chair Gary Gensler has said that he is "disappointed" by the US court ruling in the agency's ongoing lawsuit with Ripple 

Also Read: US Banks Could Seek XRP for Cross-Border Transfers

The US Judge had ruled that the assets sold on public cryptocurrency exchanges were not securities offerings under the law. Therefore, it would speak against a lot of what the agency has championed over the course of the two-year conflict. 

The decision has the potential to be a landmark ruling for the digital asset industry as a whole. Moreover, the SEC has consistently operated with an enforcement-first approach to regulation. This ruling should, at least partially, call some of that into question.