SEC Chair Gary Gensler has signaled cautious support for cryptocurrency innovation during a regulatory roundtable, sparking renewed optimism in digital asset markets. The comments coincided with notable price movements for Solana (SOL) and Ripple (XRP), while the meme-inspired token Pepeto saw erratic trading activity.
Speaking at a Brookings Institution event, Gensler emphasized the SEC’s commitment to "proper disclosures and investor protections" while acknowledging blockchain technology’s potential. Analysts interpreted this as a softening stance compared to his previous warnings about crypto securities violations.
Market data shows SOL gained 4.2% following the remarks, continuing its recovery from January lows. XRP remained stable amid ongoing Ripple litigation, while Pepeto—a newer token without clear utility—experienced 30% intraday swings. "The market is reacting to perceived regulatory tailwinds," said Chainalysis market analyst Leanne Reynolds. "But we’re still seeing speculative excess in smaller cap projects."
The SEC is expected to rule on multiple Bitcoin ETF applications by November, with observers noting Gensler’s comments could foreshadow approvals. However, enforcement actions against unregistered crypto projects reportedly continue behind the scenes.