Gensler Speaks On SEC Dropping Ripple (XRP) Appeal and Crypto Lawsuits

In a recent appearance on CNBC , former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler weighed in on the agency’s decision to abandon several high-profile cryptocurrency enforcement actions. Gensler’s comments come amid increasing scrutiny of the SEC’s shifting regulatory strategy, as it backs away from key legal battles against firms including Ripple, Coinbase, and Kraken. CNBC host Andrew Ross Sorkin asked the former SEC chair about the wave of optimism within the digital asset industry following the dropped cases. Sorkin remarked, “As you probably watched, so many CEOs were doing almost victory laps in the crypto world as these enforcement cases were dropped by this current administration…what did you think?” Gensler Warns of Sentiment-Driven Valuations Gensler refrained from discussing specific cases but pointed out his broader concerns about the cryptocurrency sector, particularly the role of sentiment in driving value. He stated, “Almost 99% [of the crypto field] is based on sentiment.” His broader criticism focused on the sustainability of the industry. Gensler said, “If this is just about sentiment, then, generally, those don’t end up well, and most then go down.” He also noted that digital assets such as Bitcoin may continue to hold investor interest, observing, “Something like Bitcoin” could endure due to a “real keen interest” from the public. SEC Retreats from Legal Battles Against Major Firms The SEC, under its current leadership, has decided to formally withdraw its appeal in the long-running legal case against Ripple Labs . Additionally, the agency has dismissed or ended enforcement actions involving several other major industry participants, including Coinbase and Kraken. The shift marks a significant departure from the agency’s previous aggressive enforcement stance under Gensler’s tenure. Skepticism About Long-Term Viability of Tokens When discussing the broader outlook of the industry, Gensler drew a comparison between cryptocurrencies and commodities. He noted that precious metals have retained value over time, while expressing doubt that digital tokens would follow a similar trajectory. “There’s only 2 or 3 precious metals. We humans have a certain fascination with 2 or 3 precious metals like gold. I don’t think we humans will have a fascination with 10 or 15,000 meme or sentiment tokens trading over the years,” he said. Although Gensler was responsible for the approval of the first U.S.-based spot Bitcoin exchange-traded funds (ETFs) , a move that contributed to institutional adoption, his leadership at the SEC has been widely criticized within the crypto community. He is often associated with the agency’s “regulation by enforcement” strategy, which resulted in a wave of lawsuits targeting various blockchain companies and platforms. The recent rollback of several enforcement actions has fueled speculation about a potential policy shift under the current SEC administration. While the agency has not provided detailed explanations for the change in approach, it has significantly altered the regulatory landscape, offering temporary relief for many in the digital asset sector. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Gensler Speaks On SEC Dropping Ripple (XRP) Appeal and Crypto Lawsuits appeared first on Times Tabloid .

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