- Gary Gensler lauds the US SEC’s achievements in courts when it comes to crypto cases, despite judges calling the SEC’s actions arbitrary and capricious.
- Gensler also blasted crypto exchanges for encouraging fraud.
- SEC Chair refrained from commenting on the agency’s plans regarding spot Ether ETFs.
Gary Gensler praises SEC’s court victories in crypto cases while facing criticism for arbitrary actions.
Gary Gensler Attacks Crypto Market and Exchanges Again
Gary Gensler, Chair of the U.S. Securities and Exchange Commission, on Thursday said the SEC has done remarkably well in the court on crypto cases. Gensler reaffirmed his stance that the crypto market is rife with fraud and crypto exchanges are deeply conflicted.
SEC’s Stance on Crypto ETFs
Speaking at the Investment Company Institute 2024 Leadership Summit in Washington DC on May 23, SEC Chair Gary Gensler refrained from commenting on the agency’s plans regarding spot Ether ETFs. However, he affirmed the SEC’s commitment to adhering to the law on crypto ETF bids.
He added that the SEC pivoted on Bitcoin ETFs after a court recommended the agency to reconsider Grayscale’s request to convert GBTC to a spot Bitcoin ETF.
Gensler praised the performance of the SEC in courts, especially regarding crypto cases. The agency brought enforcement actions against Binance, Coinbase, Kraken, and other crypto companies alleging violation of security laws. Crypto companies and the community have criticized the SEC for its irrational enforcement actions targeting the crypto industry.
The SEC has actually faced harsh comments from federal judges for having hypocritical, arbitrary, and capricious positions in crypto cases. The agency even faced sanctions and dismissal of lawyers for “gross abuse of power” in the Debt Box case.
SEC Vs Ripple
The long-running SEC v. Ripple Labs lawsuit is currently in the remedies phase and XRP lawyers believe a final ruling could come this year. The SEC has asked Ripple to pay nearly $2 billion in disgorgement, prejudgment interest, and civil penalty for violating securities law as per the summary judgment by Judge Torres.
In the latest development in the lawsuit, the SEC has opposed in part to Ripple’s motion to seal and redact evidence related to remedies briefing and documents, claiming concealing details from the public is against the law and is required for the court’s decision.
Conclusion
Gary Gensler’s leadership at the SEC has been marked by aggressive enforcement actions against the crypto industry, which has drawn both praise and criticism. While the SEC has seen success in court, it has also faced significant backlash for its perceived arbitrary actions. The ongoing legal battles, such as the one with Ripple, highlight the contentious relationship between the SEC and the crypto industry. As the regulatory landscape continues to evolve, the future of crypto regulation remains uncertain, but it is clear that the SEC will continue to play a pivotal role.
