Gensler Disappointed With Ripple Ruling on Retail Investors

Securities and Exchange Commission Chair Gary Gensler said he’s “disappointed” with a judge’s ruling that Ripple Labs Inc.’s XRP token wasn’t a security when sold to retail investors on exchanges.

The regulator sued Ripple in 2020, claiming the firm broke its rules when it raised money by selling the digital token without registering it as a security. The crypto industry has been closely following the case, which has potential to settle some of the long-standing questions over when digital assets are and aren’t subject to the SEC’s strict investor protection standards.

Gary Gensler speaks during an event at the National Press Club in Washington, DC, on July 17.

Photographer: Nathan Howard/Bloomberg

A federal judge in New York ruled ...