SEC Chair Gary Gensler’s latest interview shows changing viewpoints on crypto litigation in the dynamic field of cryptocurrency regulation.
When the topic of an interview with U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler turned to recent developments in crypto disputes, he found himself in an awkward position. Gensler’s radio silence over the previous three months about the Ripple XRP case was notable.
Better Markets questioned Gensler extensively on the SEC’s recent court losses in the Ripple and Grayscale lawsuits. At first, Gensler stuck to his well-known anti-crypto position, maintaining that the crypto business often breaks the law.
The interviewer did make the perceptive observation that Ripple and Grayscale, two crypto companies, seem to be winning over some sympathetic judges. Gensler became silent for a second at this statement, which indirectly acknowledged the SEC’s two recent court failures.
The implications of the Grayscale lawsuit, which sided with the company and granted its request to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin Exchange-Traded Fund (ETF), could hasten the approval of spot ETF applications submitted by industry heavyweights like Blackrock, Fidelity, and Bitwise.
Gensler informed the U.S. Senate Committee on Banking, Housing, and Urban Affairs about the SEC’s hesitation over the court ruling on Grayscale during a Congressional hearing.
In light of the loss in the Ripple litigation, Gary Gensler has tactically changed his story to stress that decisions in crypto-related disputes are decided collectively by the Commission rather than via individual acts.
Considering his previous strident anti-crypto stance, this is a major about-face. Gensler said at the Congressional hearing that the fate of a number of spot Bitcoin ETFs would be decided by a vote of all SEC Commissioners.
