SEC Chair Gary Gensler Is Now Facing Even More Lawmaker Scrutiny

April 19, 2022 2:01 pm Comments

The SEC had no other choice last week except to request another extension in its current lawsuit against Ripple.

The purpose of that request was so that it could file an objection to Judge Netburn’s recent ruling on the Motion for Reconsideration of the DPP Ruling.

Ripple, on the other hand, was ready to proceed to summary judgement without the Hinman documents in the hopes of trying to prevent the SEC from delaying the case again.

As the lawsuit is starting to approach the 2 year mark, the reputation of the SEC is starting to crumble as many are scrutinizing the regulatory actions of the SEC, especially from other lawmakers from the US government.

Just yesterday on April 18, House of Representatives Committee on Financial Services just submitted a new letter to the SEC to raise concerns over the SEC rulemakings in the digital asset industry.

FXEmpire reports:

On Monday, defense lawyer James Filan shared a letter addressed to Gary Gensler.

Mondayโ€™s House of Representatives Committee on Financial Services letter did not reference the Ripple case directly.

The letter did raise concerns over recent SEC law change proposals and the impact of such rule changes on digital assets.

Lawmakers cited two rule changes.

First Rule Change Looks to Broaden the Definition of an Exchange
The Second Rule Aims to Pool Digital Assets under the SEC

In consideration of the SEC case against Ripple Lab, the second rule change may add further confusion.

From a legal perspective, the classification of a digital asset may become a moot point under the second rule.

Questions may also arise over the timing of the proposed rule changes and the latest SEC extension.

As mentioned, such rule changes are being highly scrutinized by lawmakers within the country due to their broad definitions and their suspicious timing.

Adding rule changes in the middle of a lawsuit against Ripple would be alarming for investors and speculators who have been following the case for the last 1.5 years.

Lawmakers have specifically mentioned that what is concerning to them is the fact that second rule mentions that it would apply to digital assets deemed to be securities only in the footnote, but nowhere else in the document.

No other clarification or details were provided in the rule which makes it exceedingly hade to interpret and leaves a lot of open questions for lawmakers.

In the past week, XRP maintains a somewhat consistent price consolidation despite all the recent events.

FXEmpire reports:

At the time of writing, XRP was down 0.27% to $0.7672. A mixed morning session saw XRP rise to an early morning high of $0.7763 before falling to a low of $0.7589.

On Monday, XRP rose by 2.27% to partially reverse a 3.68% slide from Sunday. Positive updates from the SEC case have provided little support. On Saturday, XRP failed to break resistance at $0.80, hitting a weekend high of $0.7994 before the latest retreat.

XRP will need to avoid the $0.7555 pivot to move through the First Major Resistance Level at $0.7832 and test resistance at $0.79. XRP would need broader crypto market support the return to $0.78 levels.

In the event of an extended rally, XRP should test the Second Major Resistance Level at $0.7970. The Third Major Resistance Level sits at $0.8385.

As of now, the SEC has not yet commented on the recent letter submitted by the House of Representatives Committee on Financial Services.

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