Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), has expressed his disappointment with the recent summary judgment in the securities regulator’s lawsuit against Ripple. Gensler was referring to the ruling by New York Federal Judge Analisa Torres, who handed a partial victory to Ripple after ruling that retail sales of XRP did not constitute an investment contract.
Federal Judge Refers SEC v Ripple Case To Magistrate Judge
Gary Gensler’s latest comments came during an hosted by the National Press Club in Washington D.C. During his speech, the SEC Chair stated that despite being disappointed about the ruling regarding retail sales, he was pleased with the Judge’s decision regarding the institutional sales of XRP. The summary judgment came more than two years after the securities regulator sued and its executives for illegally raising $1.3 billion by selling XRP, which it described as an unregistered securities offering.
We’re pleased from that decision recognizing the importance of protecting investors on the institutional investors. While disappointed on what they said about retail investors, we’re still looking at it and assessing that opinion.”
In related news, Federal Judge Analisa Torres referred the SEC’s lawsuit against Ripple to Magistrate Judge Sarah Netburn. Judge Netburn made headlines earlier this year after ordering the SEC to hand over the controversial Hinman documents to Ripple. The documents are internal communications and speeches related to William Hinman, the SEC’s former Director of Corporation Finance, who stated in 2018 that Ethereum is not a security.
??NEW: Judge Sarah Netburn orders both @Ripple and the @SECGov to agree on 3 mutually convenient dates to schedule a settlement conference, “if they believe it to be productive at this time.”
Also recommends scheduling 6-8 weeks beforehand due to the court’s busy schedule. pic.twitter.com/zyU4Ku2OOu
— Eleanor Terrett (@EleanorTerrett) July 17, 2023
Judge Netburn has historically been critical of the securities regulator’s assertions in the lawsuit. Earlier today, the magistrate judge ordered both parties to agree on three mutually convenient dates in order to schedule a settlement meeting, provided they believe it would be a productive venture.
