Gary Gensler Reacts to Ripple Lawsuit Update and Other Crypto Cases Dismissal For the First Time Since Leaving Office

Former U.S. Securities and Exchange Commission Chairman Gary Gensler has addressed the SEC’s recent dismissal of major cryptocurrency enforcement cases, including its years-long legal battle with Ripple.

This marks Gensler’s first public response to the agency’s shift in strategy since stepping down earlier this year. When Gensler appeared live on CNBC, the media outlet asked him about the SEC’s decision to end all legal and appeal actions against Ripple and major companies, including Coinbase and Kraken.

He did not comment on specific cases but acknowledged the reaction from the crypto community. Gensler noted that many CEOs were taking “victory laps,” interpreting the dismissals as a reversal of the SEC’s previous enforcement direction.

Gensler warned that people should not rush to celebrate victory, stating once again his ongoing belief that cryptocurrencies show weak financial stability because public emotions primarily determine their value.

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He declared that nearly all crypto operations operate solely based on hype rather than real value. Gensler believes Bitcoin could survive because of worldwide interest, yet expresses doubts about the long-term viability of additional altcoins that exist in large numbers.

He compared the digital asset craze to human interest in precious metals, emphasizing that lasting value typically centers around only a few assets. Gensler advised investors to evaluate the real fundamentals behind their tokens, warning that sentiment-driven markets often collapse over time.

Gensler Criticizes Trump’s Tariff Policy Amid Rising U.S.–China Trade Tensions

In another part of the interview, Gensler spoke on broader economic issues, particularly the escalating trade tensions between the U.S. and China. He criticized the current administration’s tariff approach under President Donald Trump, calling it a “self-inflicted injury” that could destabilize financial markets.

Reflecting on his experience negotiating with Chinese financial authorities, Gensler said China remains firm in its belief that it can outlast short-term volatility. He described the Chinese strategy as one of patience and noted that consistent, private diplomacy is more effective than aggressive public messaging.

Gensler predicted that Washington’s current trade approach would produce adverse results by creating unnecessary doubt between nations and internationally across market sectors. Due to its deliberate method, China requires U.S. policymakers to stay steady and disciplined in their approach.

Conclusion

Gensler’s remarks come when the SEC is shifting away from its earlier aggressive crypto enforcement strategy while global economic risks continue to mount. As lawsuits fade and regulations soften, his cautionary stance highlights unresolved structural challenges within the digital asset market.

At the same time, his warnings on trade policy underscore the potential financial fallout of heightened U.S.–China tensions under the Trump administration.

Also Read: Ripple vs. SEC Saga Could Still Drag on For Months, Lawyer Explains What’s Next

The post Gary Gensler Reacts to Ripple Lawsuit Update and Other Crypto Cases Dismissal For the First Time Since Leaving Office appeared first on 36Crypto.