The XRP pill hard to swallow? In the lawsuit between Ripple (XRP) and the SEC (Securities Exchange Commission) of Gary GenslerThe court’s decision may seem like a draw. Nonetheless, it has more of an aftertaste of victory for the crypto sector, which has been bludgeoned by sanctions since the start of the year. Gensler has finally spoken out on the subject. Read on.
Gensler « disappointed » by court ruling on XRP
SEC boss Gary Gensler is… intervened at National Press Cluba major worldwide organization of journalism professionals. On the sidelines of a speech on artificial intelligence, he was asked about the effects of this court ruling on future crypto regulation. True to form, Gensler gave a half-hearted answer:
« We are pleased with the decision recognizing the importance of protecting investors. [institutionnels] (…) and disappointed regarding [la partie du jugement] on retail investors. We are still analyzing this opinion [de notre côté]. «
Gary Gensler
To summarize, the token XRP issued by the Ripple company is considered a security (a share or security ) for institutional sales. In fact, it does fall under SEC regulations in this specific case. On the other hand, the XRP is not considered a security when selling to individuals (and professionals for that matter) on exchanges. In short, the SEC would have no authority over crypto sales via exchanges.
This should remove a thorn from the side of Binance and Coinbase, recently attacked by the regulator. And it should also open the way for Spot Bitcoin ETFs from BlackRock and its acolytes. In fact, their partner Coinbase would be beyond the reach of the SEC’s attacks. A plan almost too perfect for Lary Fink?
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Are exchanges still threatened by the SEC?
Gary Gensler, however, has no intention of giving up. continues to threaten crypto exchanges with his declarations.
« There are rules in the books [de loi] about what it means to be an exchange, a broker, and an investment advisor. […] We’ve put forward, even passed laws regarding these exchanges. »
Companies in the crypto industry have strongly criticized these proposed laws. Some of them are not compatible with the functioning of the ecosystem. Typically, applying the legal definition of an exchange to decentralized entities seems impossible. But that’s exactly what Gensler wants. The SEC boss continues to see DEX (Decentralized Exchanges) as more or less centralized entities. In his view, DeFi is merely a concealed CeFi.
« This sector is actually rather centralized. (…) Finance tends towards a certain centralization. »
So the match doesn’t seem to be totally won for the crypto sector. Nevertheless, the court ruling in the XRP case clearly seems to go in the right direction, and tends to demonstrate the abuse of authority that Gary Gensler has recently made use of. Nevertheless, the SEC boss has not said his last word. It will still take a great deal of effort for players trying to break into the tech sector to assert their right to innovate. We’ll have to keep fighting until we achieve a sound legal framework for this technology. which promises to revolutionize our economy.
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