SEC expresses 'disappointment' over Ripple's XRP legal defeat

Gary Gensler, Chair of the SEC, stated that while the agency was disappointed with the judge’s ruling, it was pleased with the portion highlighting Ripple’s improper sale of XRP tokens to sophisticated investors.

Gensler also revealed that the SEC is working on climate disclosure rules and exploring regulations for artificial intelligence (AI) due to the risks it poses to investors and financial stability.

In a significant win for the cryptocurrency industry, a U.S. judge recently determined that Ripple did not violate federal securities laws when selling XRP on public exchanges, potentially aiding other crypto firms in their battles against the SEC.

The SEC has been actively pursuing lawsuits against numerous crypto firms, arguing that most crypto tokens should be registered as securities under its jurisdiction.

Gensler emphasised the need for new approaches to tackle financial stability challenges arising from technologies like predictive analytics and machine learning, stressing the importance of responsible innovation and public safety.

The SEC is considering new regulatory proposals to address potential conflicts of interest arising from AI and machine learning used by investment advisers and broker-dealers. They are also finalising a rule on corporate disclosures of greenhouse gas emissions and climate risks, which may be completed in October. However, Gensler noted that further work is still required before finalisation.