According to U.Today, the Securities and Exchange Commission (SEC) has appointed a new director for its Chicago Regional Office, its second-largest regional office. This development has sparked renewed discussions about cryptocurrency regulation. The new director's stance on cryptocurrencies has been questioned by crypto enthusiasts, reflecting the industry's widespread uncertainty about regulatory attitudes.
Marc Fagel, a former SEC employee and specialist in security law enforcement, has clarified that personal views on cryptocurrencies are not relevant in such regulatory roles. Fagel stated that the main focus for individuals in these positions is enforcing federal securities laws, not personal opinions on cryptocurrencies. His comments come at a time when the SEC's approach to cryptocurrency enforcement is a contentious issue. Critics argue that federal securities laws are outdated and often misapplied to cryptocurrency protocols and foundations.
Fagel responded to these criticisms by highlighting the SEC's track record in crypto enforcement actions. He noted that the SEC has not lost a case on its merits yet. While acknowledging that the Ripple case had mixed results, he emphasized that the courts generally support the SEC's positions.
The Ripple case, overseen by Judge Analisa Torres, has been particularly noteworthy. In her ruling on July 13, 2023, Torres determined that while the XRP token itself is not a security, the way it was sold could be considered a security sale. Specifically, institutional sales of XRP were deemed unregistered offers and sales of investment contracts, while programmatic sales and other XRP transactions by Ripple were not.
The Ripple case is now in the remedies phase, with the SEC demanding a $1.9 billion fine. However, Ripple disputes this figure, suggesting the penalty should not exceed $10 million.