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U.S. Securities and Exchange Commissioner (SEC) Chair Gary Gensler expressed his disappointment on Monday regarding the district court's decision in the Ripple case concerning retail investors. However, he found satisfaction in the portion of the order that determined the institutional sale of the tokens to be in violation of federal securities laws.

"We’re pleased from that decision recognizing the importance of protecting investors on the institutional investors," Gensler said at an event of the National Press Club in Washington DC. "While disappointed on what they said about retail investors, we’re still looking at it and assessing that opinion."

Ripple achieved a significant win in its battle against the SEC last week when a court ruling determined that institutional sales of the tokens breached federal securities laws. However, sales conducted on exchanges and through programmatic means were not considered securities transactions. This ruling was based on the SEC's inability to conclusively prove that speculative investors possessed "a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others."

Gensler refrained from responding to a query regarding the specific criteria the SEC required to gain confidence in spot-bitcoin ETFs. He cited ongoing legal proceedings and emphasized the importance of avoiding preconceived notions as the SEC chair when evaluating the numerous applications before the regulatory entity.

When asked about the SEC's preference for regulatory enforcement rather than rulemaking, similar to the European Union's Markets in Crypto Assets (MiCA), Gensler acknowledged that the SEC has indeed engaged in rulemaking efforts. He mentioned specific examples such as "notice and comment rulemaking" and the introduction of licensing for "special purpose broker-dealers."