Gary Gensler still believed that XRP was a security in his last filing with the SEC
Outgoing Securities and Exchange Commission (SEC) Chairman Gary Gensler has filed a document that will likely be his organization’s final lawsuit against the cryptocurrency promoter. The document explains why the ruling that redefined the cryptocurrency industry over Ripple’s XRP was supposed to be a tragic mistake.
In the new SEC attractiveness To the Second Circuit, commissioners reconsider a landmark ruling by the U.S. District Court for the Southern District of New York — concluding that it was a grave error.
It is widely misinterpreted to rule, Judge Analisa Torres ruled that Ripple did not illegally advance $757 million worth of unregistered securities. Through automated sales of XRP to retail buyers.
Within hours, this decision led to a 60% rise in the XRP token and the spread of misconceptions such as Belief That “no blockchain token represents security at all” or the SEC somehow never It has jurisdiction over cryptocurrency exchanges.
Fans of the decision preferred to ignore the long history of US courts approving most enforcement complaints filed by the SEC against cryptocurrency violators. In fact, solid statistics prove this The SEC prevails In the vast majority of lawsuits involving cryptocurrencies.
Despite this evidence, Torres’ XRP decision has drawn significant ridicule to Gary Gensler’s career.
Hashtags like #FireGaryGensler spread on social media, and well-funded cryptocurrency investors activated their media apparatuses to stir up more hostility against Gensler than the laws he imposed.
Media pressure mounted, and eventually Gensler decided to announce his resignation. Effective as Donald Trump is inaugurated on January 20, Gensler will resign as Chairman of the Securities and Exchange Commission.
Gary Gensler’s Final View on Secondary Cryptocurrency Sales
His departure two business days from today makes his latest filing against Ripple even more significant.
In essence, this is the Gensler-led team’s latest explanation of how altcoin lawyers twisted the words of the law to circumvent Congress’ intent to put safeguards in place for ordinary investors in an industry where… Over 99% of millions of currency offers have it It dropped to nearly -$0.
In the appeal led by Gensler, SEC commissioners argued that Torres mistakenly concluded that Ripple’s automated sales of XRP to retail investors did not constitute offers of securities. The commissioners assert that Ripple misled retail investors into expecting XRP to rise based on Ripple’s efforts, regardless of whether they knew they were purchasing XRP programmatically or from Ripple directly.
The SEC is reconsidering Ripple’s extensive public marketing campaign, which bolstered Ripple’s efforts to increase the value of XRP.
The commissioners also argue that the identity of the seller does not matter, asserting that a requirement of the Supreme Court’s Howey test is that investors expect profits It does not depend on investors knowing the identity of the seller.
They also delve into the legal standards for making an objective investment decision and offer securities with the help of brokers.
Finally, the SEC reiterates its view that all units of XRP are fungible, making their price irrelevant to the identity of the seller. This also supports the argument that programmatic retail sales should be treated similarly to institutional and contract sales.
Read more: The SEC wants the Second Circuit to overturn the Ripple XRP decision
At more than 100 pages, the Gensler-led appeal will likely be the final document crypto investors will have as a counterargument against the persistent views of pro-altcoin lawyers.
Trump’s transition team will recommend a new SEC chair starting next week, and Gensler’s views on the five-seat panel will fade.
Regarding Ripple’s offerings for XRP and its implications for the securities status of millions of altcoins – that decision is now in the hands of the US Court of Appeals for the Second Circuit.
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2025-01-16 21:48:00
