SEC Chair Gensler is Disappointed in Court Order in XRP Case
- SEC Chair Gary Gensler has mixed reactions to Judge Analisa Torres’ decision in the XRP case.
- Gensler was happy that the judge protected institutions but did not agree with the retail part of the ruling.
- Torres filed paperwork on July 17 referring to the Ripple vs. SEC case with Magistrate Judge Sarah Netburn.
- The document confirms that the next step would be a general pretrial with a short window to raise queries.
The Chairman of the United States Securities and Exchange Commission, Gary Gensler, has said that he is not happy with the decision that Judge Analisa Torres of the US District Court for the Southern District of New York took in Ripple vs. SEC on July 13. However, he is supportive of the decision that the judge took to protect the institutional investors.
The SEC Chair has finally commented publicly for the first time since the ruling on July 13 at the National Press Club on July 17. He was asked to share his thoughts on the ruling, whether the decision affected his stance on cryptocurrency, and whether it “injected urgency into the need for federal legislation to clarify regulatory oversight of this industry.”
“We are pleased from that decision recognizing the importance of protecting investors—institutional investors—and the court movement in regard to fair notice, and while disappointed [by] what they said about retail investors, we are still looking at it and assessing that opinion,” Gensler replied.
The same topic arose later when the SEC Chair spoke to Yahoo Finance in an interview. He said, “We are pleased that the court addressed […] that a token for institutional investors is a security […] disappointed in the other aspect about retail investors. We are still taking a look at that and considering it.”
Interviewer Jennifer Schonberger told Gensler that a lot of exchanges see this as a win for the crypto space and Ripple and are therefore relisting the XRP token. Could the decision set a precedent? To this, the SEC Chair replied that “you’re asking good questions,” but declined to answer them.
However, he did say that “these crypto platforms are commingling a number of services that […] we would not allow in any other parts of our capital markets.”
It is crucial to note that Judge Torres filed paperwork on July 17 referring the Ripple vs. SEC case to Magistrate Judge Sarah Netburn. Journalist Eleanor Terrett was the first to report this event, confirming that the court issued an “amended order of reference to a Magistrate,” transferring judiciary oversight of the case to the magistrate’s office.
The document confirms that the next step would be general pretrial, which usually entails discovery and a short window to raise objections.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
