Ripple’s Legal Triumph Over SEC
The SEC initiated the Ripple case in December 2020, accusing Ripple of selling $1.3 billion in unregistered XRP securities.
Following Gensler’s appointment as SEC chair, he adopted an enforcement-centric approach to regulating cryptocurrencies, leading to his classification of tokens other than Bitcoin as securities.
In July, the United States District Court for the Southern District of New York (SDNY) ruled against Gensler’s claim, stating that XRP does not qualify as an investment contract and most of Ripple’s XRP sales did not violate the law, contradicting the SEC’s initial allegations.
Consequences of SEC’s Non-Compliance
Despite the setback with Ripple, Gensler and the SEC persist in an enforcement-centric regulatory approach, recently charging Kraken Exchange with violating securities laws.
Renowned analyst Hassan Tyler highlights the real-world consequences of the SEC’s refusal to adhere to the law, asserting that ongoing failures affect markets, investors, and the U.S.’s credibility as an innovation capital destination.
Tyler warns of harm to U.S. investors and emphasizes the need for the SEC to change its crypto regulatory approach. If the relevant authorities do not change the SEC’s leadership, Congress needs to get involved by imposing a clear crypto regulatory framework on the SEC.
Hot Take: Hassan Tyler Disapproves of SEC Chair’s Regulatory Tactics
Renowned analyst Hassan Tyler disapproves of SEC chair Gary Gensler’s regulatory tactics, asserting that Gensler hasn’t learned from the SEC’s loss in the XRP case.
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