Markets
XRP News Today: Fifth Circuit Ruling Challenges SEC’s Reach into Cryptocurrency Market
The court’s ruling followed an interview by SEC Chairman Gary Gensler with CNBC. President Gensler had this to say about disclosure:
“We, the SEC, will be 90 years old tomorrow. Happy birthday SEC, 90 years old. And what President Roosevelt did was create this Commission to oversee that you investors get disclosure. And in the cryptocurrency markets they don’t give you that disclosure.”
However, the Fifth Circuit’s ruling is unlikely to affect the SEC case against Ripple. Ripple expects a court ruling in the coming months. In March, the SEC presented this is a fine of almost $2 billion and an injunction prohibiting the sale of XRP to institutional investors.
In April, Ripple held down for a fine of $10 million, arguing that there were no allegations of fraud or recklessness. Significantly, Ripple disputed the SEC’s accusation that it continued to violate U.S. securities laws following the 2020 complaint.
The SEC ruling against Ripple could depend on how the court views post-complaint XRP sales. If the court finds that the post-complaint sales violated U.S. securities laws, Ripple will likely face punitive disgorgement and, possibly, an injunction.