Former Commodity Futures Trading Commission (CFTC) Chair Chris Giancarlo has predicted that the United States Securities and Exchange Commission (CFTC) will drop the case against Ripple.
The former CFTC Chair is known as “Crypto Dad,” thanks to his progressive views on digital assets.
Ripple’s Fight Against The SEC Coming To An End?
Ripple’s lengthy legal battle with the Securities and Exchange Commission has seen significant developments after Gary Gensler confirmed he was stepping down. Speculation of the case being dropped entirely under new leadership has grown significantly. The lawsuit dates back to December 2020, when the SEC accused Ripple and its executives of illegally raising $1.3 billion through an unregistered securities offering by selling its native cryptocurrency, XRP. However, there is renewed optimism of a resolution after Donald Trump’s presidential win. The president-elect had promised to fire Gensler on his first day in office. These developments led to a substantial jump in the price of XRP, with speculation growing that the legal battle would be resolved under Gensler’s successor.
Former CFTC Chair Chris Giancarlo said the SEC may drop the case against Ripple under the Trump administration.
“I would recommend that regulatory agencies drop many of these cases where they’ve lost. I think they should drop the XRP case. I would bet that they would.”
The former CFTC Chair has previously argued that XRP should not be classified as a security. This view aligns with a July 2023 ruling by Judge Torres, which found certain XRP transactions did not qualify as securities sales. Giancarlo has been highly critical of Gensler’s leadership and has pointed at high turnover, diminished morale, and overreach in enforcement action.
Giancarlo supports the creation of a “crypto council” to ensure a coordinated, strategic approach to crypto policy under the Trump administration. He also proposed a list of potential candidates for the SEC leadership, including Paul Atkins and Kevin Hassett, who, according to him, will bring expertise and a commitment to innovation.
Potential Scenarios
Attorneys Jeremy Hogan and Fred Rispoli discussed potential scenarios for the legal battle between Ripple and the SEC under new leadership. Hogan believes the commission may dismiss all non-fraud crypto lawsuits over the years. He also believes Ripple and the SEC will settle the lawsuit for the previously ruled $125 million. Hogan stated,
“It would be awkward to settle for less than what was already decided by a court. The Coinbase and other cases in litigation will simply be dismissed. This will take some time, not January, but before Summer. That’s my call, and I’m sticking to it.”
Meanwhile, Rispoli believes dropping the lawsuit is unrealistic and said the $125 million penalty is the biggest win the SEC can get. He also predicted the SEC’s new leadership will recognize the “case was idiotic and settle at that point.”
“This might include a reduction in the fine and an agreement that current sales of XRP by Ripple are sufficiently structured to not be investment contracts.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.