- SEC Chair Gary Gensler remains silent on the agency’s next steps following the XRP ruling.
- The XRP ruling classifies the token as a security only when sold to institutional investors.
- Ripple’s Chief Legal Officer asserts that once XRP is deemed not a security, the SEC will lose jurisdiction.
The U.S. Securities and Exchange Commission (SEC) Chair, Gary Gensler, has maintained a guarded stance regarding the agency’s next course of action following the XRP ruling in favor of Ripple. During a Bloomberg TV segment, Gensler adeptly sidestepped questions about the SEC’s plans to appeal the ruling, underscoring that the agency has yet to reach a decision.
The XRP ruling on July 13, 2023, classified the XRP token as a security only when sold to institutional investors. Sales to retail investors, however, do not violate federal securities law. This decision led to a resurgence of the XRP token on major crypto exchanges like Coinbase.
Despite calls for clarity, Gensler refrained from commenting on the XRP ruling, stating that the SEC is still deliberating on the Summary Judgment. He reiterated his belief that the broader cryptocurrency market continues to flout securities laws, regardless of the XRP ruling.
The potential actions the SEC may take in response to the XRP ruling have sparked speculation, leaving investors uncertain about Ripple’s victory in the lawsuit’s final judgment. Ripple’s Chief Legal Officer, Stuart Alderoty, asserted that once XRP is deemed not a security, the SEC will lose its jurisdiction over the token’s trading.
Looking ahead, the future of Ripple in the crypto space appears promising. Despite the ongoing legal battles, Ripple continues to innovate and drive the adoption of XRP. The potential for growth is limitless, and the crypto world is still growing. As Ripple navigates through these legal challenges, the resilience and potential of XRP become more evident.
