Gary Gensler maintains belief that XRP was a security in recent SEC filing
as jurisdiction over crypto exchanges.
Supporters of the decision chose to overlook the long history of US courts siding with the SEC in enforcement actions against crypto offenders. The data clearly shows that the SEC is successful in most of its crypto-related lawsuits.
Despite the evidence supporting the SEC’s stance, Judge Torres’ ruling on XRP led to widespread criticism of Gary Gensler’s tenure at the SEC. Hashtags like #FireGaryGensler gained traction on social media, and influential crypto investors ramped up their efforts to disparage Gensler and the regulations he enforced.
Under increasing scrutiny and pressure from the media, Gensler ultimately announced his resignation, effective on Donald Trump’s presidential inauguration day.
Gensler’s final legal stance on secondary crypto sales carries significant weight as he navigates through his last days in office. His recent filing against Ripple serves as a parting explanation of how legal tactics have been used in the altcoin industry to circumvent investor protection measures established by Congress.
The appeal led by Gensler and his team aims to clarify how altcoin advocates have manipulated legal terms to bypass regulatory scrutiny in an industry where the vast majority of coin offerings have failed drastically.
In the appeal, the SEC commissioners challenge Judge Torres’ decision, arguing that Ripple’s sales of XRP to retail investors were indeed securities offerings. They claim that Ripple misled investors by leading them to believe that the value of XRP would increase due to Ripple’s efforts, regardless of how they acquired the tokens.
The SEC also questions the relevance of seller identity when determining if a token sale constitutes a securities offering. They raise concerns about investor expectations of profits and the legal standards surrounding investment decisions and intermediary-assisted sales.
Furthermore, the SEC highlights the fungibility of all XRP units, emphasizing that their price is not dependent on the seller’s identity. This argument supports the notion that retail sales should be treated similarly to institutional transactions under securities laws.
As Gensler prepares to step down from his role at the SEC, his views on Ripple’s XRP offerings and the broader implications for the status of altcoins are left to be determined by the US Court of Appeals. With a new SEC chairman set to be recommended by Trump’s transition team, Gensler’s influence within the commission will diminish, ultimately leaving the fate of Ripple and other altcoins in the hands of the legal system.
