Markets
XRP News Today: Fifth Circuit Ruling Challenges SEC’s Reach in Crypto Market
The court’s decision followed an interview by SEC Chairman Gary Gensler with CNBC. Chairman Gensler had this to say about the disclosure:
“We, the SEC, will be 90 years old tomorrow. Happy birthday, SEC, 90. And what President Roosevelt did was create this Commission to oversee that you, the investors, get disclosure. And in the cryptocurrency markets, they’re not disclosing that.”
However, the Fifth Circuit’s decision will likely not influence the SEC vs. SEC case. Ripple. Ripple anticipates a court decision in the coming months. In March, the SEC introduced its case for a fine of nearly $2 billion and an injunction prohibiting sales of XRP to institutional investors.
In April, Ripple held down for a $10 million fine, arguing there were no allegations of fraud or recklessness. Significantly, Ripple disputed the SEC’s accusation that it continued to violate US securities laws following the 2020 complaint.
The SEC vs. SEC decision Ripple may 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 restitution and possibly an injunction.