United States SEC Chair Gary Gensler recently spoke publicly about the agency’s ruling on the Ripple case. During a talk on artificial intelligence at the National Press Club, Gensler shared his perspective on the matter. Additionally, in an interview with Yahoo Finance, he further discussed the implications of the decision.

Gensler’s Initial Response and Continued Discussions

Gensler was asked about the impact of the Ripple ruling on his stance regarding cryptocurrency. This was during the question and answer session following his talk on artificial intelligence. He was also questioned about the potential need for federal legislation to clarify regulatory oversight in the industry.

In response, Gensler expressed satisfaction with the court’s decision in recognizing the importance of protecting institutional investors. He also acknowledged the court’s consideration of fair notice. However, Gensler expressed disappointment with the court’s view on retail investors. He stated that the SEC is still examining and assessing the opinion.

Later in the day, Gensler addressed the Ripple ruling in an interview with Yahoo Finance. When interviewer Jennifer Schonberger mentioned that many crypto exchanges viewed the decision as a victory and were relisting XRP, she asked Gensler about the possibility of the ruling setting a precedent. While acknowledging the insightful question, Gensler declined to provide an answer due to ongoing litigation.

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Gensler’s Concerns

During the interview, Gensler did express apprehension about certain practices in the crypto industry. He mentioned that many crypto platforms are combining multiple services that would not be permitted in other areas of the capital markets.

Although Gensler was asked if these practices would lead him to consider developing tailored regulations for the crypto industry, he stated that it is too early to make such decisions, highlighting that the Ripple ruling had only been handed down three business days prior. Nonetheless, he emphasized that the SEC already has existing rules regarding securities exchanges.

When questioned about proposed Republican legislation that would introduce a decentralization test for crypto assets, Gensler opted to withhold comment. He said he was reserving it for direct inquiries from members of Congress.

Industry Centralization and Finance Economics

Gensler also discussed the concept of decentralization within the crypto industry. He acknowledged Satoshi Nakamoto’s paper on facilitating value transfers without intermediaries but noted the prevalence of centralization in various aspects of the industry. Gensler concluded by stating that the field of cryptocurrency is not exempt from the principles of financial economics.

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