SEC Chair ‘Active Discussions’ Comment on XRP Sparks Debate

XRP community members try to unravel the mystery behind Gary Gensler’s recent remarks on XRP’s legal status.

SEC Chair Gary Gensler’s testimony before the United States House of Representatives Committee on Financial Services has continued to be a major topic of discussion in the XRP community.

Several XRP enthusiasts have joined the discussion, given that Gensler answered questions regarding the sixth-largest cryptocurrency by market capitalization. As reported by The Crypto Basic earlier, Congressman Warren Davidson asked the SEC boss whether he believed XRP was a security.

Given the securities regulator’s claims throughout the legal battle, those following the ongoing Ripple v. SEC lawsuit would have expected Gensler to call XRP security outrightly. 

However, the SEC boss did not say whether XRP was a security. Instead, Gensler asserted that the case is still in court. He added that there are “active discussions and litigation on the matter.” 

XRP Community Members React

His remark on XRP’s regulatory status has been the major bone of contention in the XRP community. An XRP community member named Kev described Gensler’s response about XRP as a “slip of the tongue,” which came because the congressmen rattled him.

He sounded pretty rattled by that stage after the barrage of questions he was trying to deflect and not answer any with a YES or a NO reply. So this sounded like a slip of the tongue to respond so they would move onto the next question

— Kev (@Kev19081874) April 20, 2023

A user partially agreed with Kev’s opinion but commented on Gensler’s body reaction. Throughout the congressional hearing, people could see Gensler panicking whenever he was asked to respond to specific questions like the regulatory status of XRP. 

Commenting on Gensler’s bodily reaction, Kev described it as a “fight or flight response,” as the SEC boss had to sit before the committee to endure a tough session.

“[It’s] normal for the body to produce adrenaline & cortisol. I think anyone would have the shakes under similar conditions,” he said.

Pro-XRP Lawyer Reacts

Bill Morgan, a pro-XRP lawyer, also joined the discussion. He explained that Gensler’s congressional hearing is similar to when a witness is cross-examined in court. 

“Rattle them if they are being intransigent so the truth or an admission slips out,” Morgan added.

That is exactly what happens in court when you cross-examine a witness. Rattle them if they are being intransigent so the truth or an admission slips out. https://t.co/QvddTqWD2G

— bill morgan (@Belisarius2020) April 20, 2023

Following Morgan’s response, Kev said Gensler’s remark about XRP could be the truth that ultimately slipped out. He added that Gensler finally cracked under pressure.

So maybe it was the truth that slipped out in the end?
He finally cracked under the pressure ..

— Kev (@Kev19081874) April 20, 2023

Meanwhile, Morgan emphasized a part of Gensler’s comment where he said, “there are active discussions” on whether XRP is a security. According to the pro-XRP lawyer, the comment suggests an active discussion. Morgan tried to figure out the discussion, whether it is a possible settlement with Ripple or an internal SEC debate on whether the regulator should settle with the blockchain company.

It is not just that he said discussions but said ‘active’ which means discussions taking place now & while referring to the litigation. Who knows what discussions. Could be settlement discussions with #Ripple. Could be internal SEC discussions about whether to settle with Ripple https://t.co/FRBIHMieLn

— bill morgan (@Belisarius2020) April 20, 2023

Whether the SEC is planning to settle with Ripple remains to be seen. Notably, the crypto community expects Judge Analisa Torres to issue a ruling on the case. 

Attorney John Deaton, founder of CryptoLaw, Judge Torres’ ruling on the lawsuit may come at any time.