Chris Giancarlo, the former Chairman of the Commodity Futures Trading Commission (CFTC), recently suggested that the U.S. Securities and Exchange Commission (SEC) might drop its lawsuit against Ripple Labs. In an interview with FOX Business, Giancarlo—also known as “Crypto Dad”—raised the possibility that the SEC could reassess the case, especially after the court’s important ruling in August.
SEC’s decade-long crypto manipulation is coming to an end, but does it mean that the New chair can dismiss pending crypto cases? Let’s break it down!
In its decision, the trial court ruled that XRP itself is not a security. However, it did find that institutional sales of XRP could be considered securities. This ruling was a significant win for Ripple, as it set an important precedent for how XRP transactions might be treated in future regulatory decisions.
Despite this victory, the SEC appealed the decision, particularly the parts it lost. Ripple filed its own counter-appeal, challenging the court’s interpretation of institutional sales. Both sides are preparing for further legal battles, with the SEC’s appeal brief due on January 15, 2025.
Eleanor Terrett of FOX Business recently reported that the Trump administration is looking to have the Commodity Futures Trading Commission (CFTC) take the lead in regulating digital assets. With Donald Trump possibly returning to the presidency, speculation is growing that new leadership at the SEC could push for a reassessment of the Ripple case.
If a pro-crypto SEC chair is appointed, it could signal a fresh approach to crypto regulation, potentially leading to a dismissal of the lawsuit.
What Happens if the SEC Changes Leadership?
This speculation has gained more attention since current SEC Chair Gary Gensler announced that he plans to step down in January 2025. Trump’s transition team is reportedly in discussions with crypto industry leaders to select a new SEC chair who may be more supportive of crypto-friendly policies.
Curious about how the Ripple vs SEC battle could impact XRP? Read XRP price prediction to see where the market might be headed next!
Two well-known U.S. attorneys, Jeremy Hogan and Fred Rispoli, recently shared their thoughts on the SEC’s case against Ripple. Hogan believes that the SEC may eventually drop many of its non-fraud crypto lawsuits, including the Ripple case, and settle for the previously imposed $125 million penalty. He predicts this could happen before summer 2025, but not by January.
On the other hand, Rispoli thinks it’s unlikely the SEC will drop the case entirely. He suggests that the $125 million penalty remains the best outcome the SEC can expect and believes new leadership will eventually recognize the flaws in the case and settle.
The court ruled that XRP itself is not a security, but institutional sales of XRP could be considered securities.
The SEC appealed parts of the decision in Ripple’s favor, with briefs due by January 2025. Both sides are preparing for more legal battles.
Legal experts predict a potential settlement, possibly involving a $125 million penalty, but it’s uncertain whether the SEC will drop the case entirely.
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