Markets
XRP News Today: Fifth Circuit Ruling Questions SEC’s Reach Into Crypto Market
The court’s decision followed an interview by SEC Chairman Gary Gensler with CNBC. Chairman Gensler said this about the disclosure:
“We, the SEC, will celebrate our 90th anniversary tomorrow. Happy birthday SEC, 90 years old. And what President Roosevelt did was he created this commission to make sure that you, the investors, got the disclosure. And in crypto markets, they don’t disclose this information to you.
Nonetheless, the Fifth Circuit’s ruling is unlikely to influence the SEC v. Ripple case. Ripple expects a court decision in the coming months. In March, the SEC present his arguments for a nearly $2 billion penalty and an injunction barring sales of XRP to institutional investors.
In April, Ripple press for a $10 million fine, arguing there was no allegation of fraud or recklessness. Significantly, Ripple disputed the SEC’s accusation that it continued to violate U.S. securities laws after the 2020 complaint.
The SEC v. Ripple decision may depend on how the court views post-complaint XRP sales. If the court infers that the post-complaint sales violated U.S. securities laws, Ripple will likely face punitive disgorgement and, possibly, an injunction.