SEC Chairman Gensler Makes First Comments on Ripple Trial Ruling


satisfaction and disappointment

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said in an exclusive interview with Yahoo! But he also said he felt “disappointed”.

Judge Analisa Torres of the U.S. District Court (Southern District Court of New York) said on the 13th that while Ripple’s method of selling XRP to institutional investors violates U.S. securities laws, general investors through virtual currency exchanges It ruled that a sale to a company did not amount to a sale of securities.

The SEC lawsuit against Ripple has been going on for about two and a half years, but this ruling marks a break.

In response to this ruling, major US exchanges Coinbase and Kraken immediately decided to relist XRP. It was seen as a “victory (big step forward)” for the cryptocurrency industry, and the price of XRP soared to more than double from the previous day.

connection:“The virtual currency XRP itself is not a security,” US district court rules

Gensler said he was “satisfied” with the judgment that tokens sold to institutional investors were securities, but “disappointed with the interpretation regarding retail investors”, adding, “Regarding this decision, (including the possibility of The chairman made similar comments at a National Press Club event on the same day.

Impact on Other Lawsuits

Asked whether the New York District Court’s ruling could set a precedent for other ongoing lawsuits, Gensler declined to give a direct answer.

These cryptocurrency platforms mix customer-facing transactions and bundled services that no other part of our capital markets allow.

When asked if the market might reconsider the creation of new rules specific to cryptocurrencies given the market’s regulatory turmoil, Gensler replied, “It’s been a while since the ruling, and the SEC has It’s too early to rush to conclusions,” he said, but he reiterated his assertion that there are already clear regulations, and said he would continue to consider them.

And when asked for his opinion on the Republican House Financial Services Committee’s new regulatory framework, specifically a “decentralization test” for tokens, Gensler said he would answer lawmakers directly.

On the other hand, when it comes to decentralization, the crypto industry is also not immune to the financial economics that finance tends to be centralized, and in fact many tokens are run by centralized groups. He said that it was “centralized” such as.

Risks posed by AI

Gensler also spoke about the risks posed by artificial intelligence (AI). For financial markets, he warned that AI could destabilize the global economy if big tech companies monopolized its development.

Because AI derives the same signals from a single base model or data collection program, it may facilitate the formation of clusters where individual parties make similar decisions, potentially increasing financial fragility. Conceivable. It could also exacerbate the interconnectivity of networks inherent in the global financial system.

Gensler argued that many of the financial stability AI challenges require new thinking about regulatory intervention. He said an update to risk management guidance is needed and that it is not sufficient in its current form.

If a trading platform’s AI system considers the interests of both the platform and its customers, “it could lead to a conflict of interest,” he said. As a specific example, he mentions the possibility of optimizing AI for intermediaries to prioritize their own interests over those of investors. It has asked SEC officials to come up with regulatory proposals for consideration on how best to deal with such situations, the people said.

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