- SEC Chair Gary Gensler commented on the recent ruling on the agency’s lawsuit against Ripple.
- Gensler expressed his satisfaction with the court’s decision regarding the importance of protecting institutional investors.
- He also mentioned his disappointment with the ruling’s impact on retail investors but stated that the SEC is still assessing the opinion.
- Gensler declined to answer questions about whether the ruling could set a precedent, citing ongoing litigation.
- He emphasized that crypto platforms are engaging in activities that would not be allowed in other parts of the capital markets.
- Gensler stated that it is too early to consider writing customized rules for crypto but noted that the SEC has existing rules for securities exchanges.
- He refrained from commenting on proposed Republican legislation for a decentralization test for crypto assets.
- Gensler acknowledged the centralization present in the crypto industry and emphasized that it is not immune to the economics of finance.
Gary Gensler’s comments on the Ripple ruling reveal his satisfaction with the court’s recognition of investor protection. However, the impact on retail investors remains a concern. Gensler’s reluctance to discuss the potential precedent set by the ruling indicates the ongoing legal complexities surrounding the case. His remarks on the activities of crypto platforms and the centralization in the industry suggest a need for regulatory scrutiny. While it may be too early for customized rules, Gensler’s acknowledgment of existing SEC regulations highlights the agency’s role in overseeing crypto exchanges. As the crypto landscape evolves, Gensler’s cautious approach reflects the need for comprehensive and thoughtful regulation.