In a Thursday Bloomberg interview, SEC Chairman Gary Gensler has weighed in on the rumors swirling around a possible appeal in the much-talked-about Ripple case.
Responding to the question on whether Ripple might appeal the case, Gensler stated, "I’m one of five commissioners. The Commission has not acted on that. And if the staff makes a recommendation, we will have a discussion on that, but I don’t have anything more on that.”
While not making any direct statements, his previous comments, which were made during a luncheon hosted by the Press Club DC, suggest that the commission is seriously considering its options.
The recent ruling in the Ripple case, which determined that Ripple-affiliated XRP token does not require disclosures when selling directly to exchanges, was met with mixed reactions. The verdict resulted in an 80% rally in XRP, only to be followed by a price drop. Speculation is now rife that the SEC may pursue an interlocutory appeal. Gensler's latest comments have only added fuel to this speculation. Yet, Ripple appears to be determined to fight back.
Many cryptocurrencies are securities
Addressing investors, Gensler stressed the speculative nature of the crypto market and highlighted that many cryptocurrencies are securities.
His statement comes in the backdrop of the SEC's lawsuit against Binance, alleging that Cardano (ADA), Solana (SOL), and Polygon (MATIC) are unregistered securities.
However, Gensler did not name any specific cryptocurrencies in his comments.
“Rife with fraud”
Gensler went on to comment on the operations of crypto platforms and intermediaries, suggesting that many were conducting activities that traditional exchanges like the Nasdaq and New York Stock Exchange wouldn't be allowed to carry out.
The SEC Chair cautioned, "This is a field that is rife with fraud, rife with hucksters. There are good-faith actors as well, but there are far too many that aren't.”