The US Securities and Exchange Commission (SEC) Chairman Gary Gensler has expressed his reaction to the court’s ruling in the Ripple case against retail investors, saying he was “disappointed” with it but “satisfied” with the verdict regarding institutional sales.
He has mentioned that the department is still assessing the opinion. When asked why the Commission prioritizes enforcement of regulations over creating specific rules for the digital asset market, Gensler has pointed to the already existing rules for security exchanges and the comments and recommendations made by the SEC.
Judge Analisa Torres ruled last July 13 that sales and distributions of XRP did not constitute the offer and exercise of investment contracts but the purchase of coins worth more than $700 million by large players still violated US laws and the SEC’s motion for a summary judgment on the matter was granted.
Now Ripple’s CEO Brad Garlinghouse and CEO Chris Larsen are awaiting a jury trial that will decide if the top managers are to be held responsible for the illegal token sales to institutions.
Former SEC lawyer John Reed Stark raised doubts about the court’s verdict and didn’t rule out the possibility of it being appealed and reversed by a higher court.
