The prospect of the SEC appealing the recent Ripple (XRP) ruling is looking increasingly unlikely as SEC Chair Gary Gensler faces intensifying criticism from Congress. In a fiery exchange, Rep. Tom Emmer blasted Gensler over his handling of crypto regulation and the ongoing confusion in the digital asset space.
🚨JUST IN: Gary Gensler, SEC Chair, faced harsh criticism in Congress today from Rep. Tom Emmer.
The time has come for Gary Gensler. I believe there will not be an appeal of the #XRP ruling.
October 7th is the deadline! pic.twitter.com/3nqRTpei2i
— JackTheRippler ©️ (@RippleXrpie) September 24, 2024
The Criticism and Scrutiny
“The time has come for Gary Gensler. I believe there will not be an appeal of the XRP ruling.” Emmer said during the congressional hearing. This statement has had growing sentiments that the SEC’s legal battles are flattering, especially after a major blow in the XRP case. Judge Analisa Torres ruled in July that XRP is not considered a security when traded on public exchanges, a decision that disrupted the SEC’s broader enforcement agenda.
Emmer did not stop at the Ripple case, accusing Gensler and the SEC of misleading the courts and abusing their enforcement powers. He claimed the SEC had “broken the law” and engaged in retaliatory actions against companies attempting to comply with regulations. “ You even baited companies eager to comply, only to hit them with enforcement actions.” Emmer stated, further criticizing Gensler’s creation of the term “Crypto Asset Security”, which he argued has no legal basis.
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The grilling of Gensler comes at a time when Vice President Kamala Harris has hinted at introducing clearer regulations for digital assets if she wins the presidency elections. Emmer suggested that Harris’s recent comments could be seen as a rebuke of Gensler’s failure to provide clarity in the crypto world during this three year tenure.
SEC’s Next Move? Appeal or Retreat in Ripple Case?
With mounting legal losses and growing pressure from Congress, the SEC may reconsider its aggressive stance. The odds of an appeal in the XRP case seem increasingly slim as Gensler’s leadership faces scrutiny from both lawmakers and the crypto community.
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