# SEC’s Continued Battle with Crypto: A Look at Gensler’s Final Move

Outgoing Securities and Exchange Commission (SEC) Chairman Gary Gensler has recently filed a significant legal document, likely marking his agency’s concluding lawsuit against a prominent crypto promoter. This filing articulates his position on a fundamental ruling regarding Ripple’s XRP, which he argues was a regrettable and misguided decision that could redefine the landscape of the crypto industry.

## Revisiting the Ripple Ruling

Within the SEC’s fresh appeal to the Second Circuit, the commissioners are challenging the pivotal ruling made by the U.S. District Court for the Southern District of New York. This ruling, which was interpreted by many as a judicial error, concluded that Ripple Labs did not engage in the illegal offering of approximately $757 million in unregistered securities through programmatic XRP sales to retail investors.

### The Ripple Effect on the Market

The immediate aftermath of this ruling saw a dramatic surge in the price of XRP token, which rallied by an astonishing 60%. This reaction fueled widespread misconceptions regarding the legal status of blockchain tokens, including the erroneous belief that “no blockchain token is ever a security” and that the SEC lacks any jurisdiction over cryptocurrency exchanges. Meanwhile, supporters of the decision seemed to overlook the long-standing history of U.S. courts siding with the SEC in various enforcement actions against alleged crypto wrongdoers. In fact, statistics genuinely indicate that the SEC achieves success in the vast majority of its crypto litigations.

## Impact on SEC’s Image and Leadership

Despite the solid evidence supporting the SEC’s position, Judge Torres’ ruling prompted a wave of criticism directed at Gary Gensler’s leadership. Social media fervently buzzed with hashtags like #FireGaryGensler, as well-funded crypto advocates ramped up pressures to vilify Gensler more than the regulations he tirelessly enforced.

The mounting media scrutiny reportedly influenced Gensler’s decision to resign from his post. As the transition of power occurs with Donald Trump’s inauguration set for January 20, Gensler’s resignation as SEC chairman signals a significant shift in the regulatory landscape for cryptocurrencies.

## Gensler’s Final Perspectives on Crypto Regulations

With his departure just a couple of business days away, Gensler’s latest filing against Ripple carries added weight. Essentially, it encapsulates his final thoughts on how attorneys from alternative cryptocurrency companies have purportedly distorted legal frameworks to sidestep the original intentions of Congress in cementing protections for ordinary investors. The reality remains stark: over 99% of the millions of coins introduced into the market have diminished to near-zero value.

### SEC’s Arguments Revisited

In this appeal led by Gensler, SEC commissioners argue that Judge Torres incorrectly assessed that Ripple’s programmatic sales of XRP to everyday investors did not equate to securities offerings. They assert that Ripple misled investors, creating an expectation that XRP’s price would rise due to Ripple’s marketing efforts, regardless of whether investors purchased XRP directly from Ripple or through other avenues.

The SEC underscores Ripple’s extensive public marketing campaign, which highlighted the company’s initiatives aimed at boosting XRP’s value. It reinforces their assertion that the identity of the seller is immaterial; according to the Supreme Court’s established Howey Test, the expectation of profit from an investment must not hinge on whether investors are aware of the seller’s identity at the point of sale.

### legal Standards and Investment Decisions

The appeal also delves deeply into the legal standards required for making objective investment decisions, alongside how intermediary-assisted securities sales must be treated. Ultimately, the SEC reiterates its contention that all XRP units are fungible assets, which indicates that the pricing of these units should not depend on the identity of the seller. This perspective solidifies their argument that retail sales executed programmatically ought to be regarded in a manner akin to institutional, contractual sales.

As the Gensler-led appeal spans over 100 pages, it is likely to serve as a crucial document for crypto investors who seek to understand the SEC’s counterarguments against prevailing pro-cryptocurrency legal viewpoints.

## The Future of SEC Leadership and Crypto Regulation

With an impending transition team expected to propose a new SEC chairman in the coming week, Gensler’s perspectives will soon lose their relevance within the five-member commission. As the situation surrounding Ripple and its XRP offerings unfolds, the implications for the securities status of countless altcoins now rest with the U.S. Court of Appeals for the Second Circuit.

## How AI legalese decoder Can Assist Investors

For investors and stakeholders navigating this complex legal landscape, understanding the intricacies of such filings and appeals can be daunting. This is where tools like the **AI legalese decoder** can be incredibly beneficial. By leveraging advanced artificial intelligence, the legalese decoder can simplify legal jargon into plain language, allowing investors to grasp the essential points of legal documents without the headache of deciphering outdated legal terminology.

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