SEC Chairman Gary Gensler was asked whether he would appeal the final summary judgment in the Ripple case.
SEC Chairman Leaves Objection Questions Unanswered
Gensler declined to offer a timeline or specific plan for potential appeals, following his statement before the Senate Appropriations Committee.
Although the SEC did not confirm its intent to appeal, Gensler reiterated parts of the federal judge's summary judgment that he agreed.
As is known, the judge said that while Ripple's sales to institutional investors were considered securities, retail sales were not.
Gensler appreciated the decision that institutional sales are securities. He also said that the decision on retail sales continues to be examined.
On the other hand, in response to the crypto industry's interpretation of the decision as a rejection of the SEC's approach to regulating digital assets, Gensler declined to comment on the matter.
When asked whether the Ripple decision would affect the SEC's lawsuits with other crypto firms until the appeal was resolved, Gensler again declined to comment.
This process can take quite a while if the SEC chooses to appeal.
Convincing the majority of the commission to appeal may be possible for Gensler and his team, given the split decision.
On the other hand, Ripple may choose to appeal, as its directors could potentially be held liable for their role in alleged illegal sale of securities.
Both parties' appeals will be taken to the Second Circuit Court of Appeals, adding even more complexity to the legal proceedings.
However, at this stage, it seems more likely that the parties will reach an agreement.
*Not investment advice.
