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Former CFTC Chairman Chris Giancarlo predicts the SEC might drop its lawsuit against Ripple.
Giancarlo made the prediction during a recent interview on FOX Business. During the interview, Giancarlo commented on the state of U.S. crypto regulation, such as expanding the CFTC regulatory oversight over the industry and the potential outcome of the Ripple lawsuit.
BREAKING: 🇺🇸 LEADING CANDIDATE FOR WHITE HOUSE “CRYPTO CZAR” STATES RIPPLE $XRP CASE WILL BE DISMISSED!
“If you’re a betting man would they drop the XRP case?” – @CGasparino
“I would bet they would.” – @giancarloMKTS
Do you believe the SEC leadership under President Trump… pic.twitter.com/6YRNJ1hwdh
— Good Morning Crypto (@AbsGMCrypto) November 26, 2024
SEC to Dismiss Ripple Case
When asked whether the SEC would drop the Ripple case under Donald Trump’s administration, Giancarlo recommended that the securities regulator consider dismissing all lawsuits it has already lost at the trial court.
However, FOX Business Senior Correspondent Charles Gasparino pressed him for a direct response, asking him to make a bet. In response, Giancarlo, popularly called ‘Crypto Dad,’ said, “I would bet they would.”
This suggests that the former CFTC expects the upcoming SEC leadership to reassess and dismiss the Ripple case based on the trial court verdict. Recall that the trial court issued its final verdict in the lawsuit in August.
SEC Appeal
In the ruling, the court affirmed its summary judgment last July, which held that while institutional sales of XRP were securities, other distributions and programmatic sales were not. It also established that XRP in itself is not a security.
After a two-month internal deliberation, the SEC appealed the Ripple ruling, seeking to overturn the part it lost. Ripple also filed a counter-appeal, challenging the trial court’s ruling on institutional sales. The parties had already filed their pre-arguments, with the SEC scheduled to file its appeal brief on January 15, 2025.
How Donald Trump Victory Might Change Ripple Case Outcome
Following Trump’s emergence as U.S. President-elect, it is speculated that the Ripple appeal might get an early dismissal. This speculation gained momentum recently after SEC Chair Gary Gensler announced plans to resign on January 20.
Currently, Trump’s transition team is actively considering a pro-crypto candidate who would replace Gensler as SEC Chair. According to the popular American magazine WIRED, the team is engaging with crypto stakeholders on potential picks.
If Trump eventually selects a pro-crypto SEC chair, the commission will likely reassess and drop the Ripple lawsuit.
Several pro-crypto lawyers like Jeremy Hogan speculated that the SEC and Ripple would settle after the company pays the judgment amount of $125 million. However, this remains unclear as of press time.