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Chris Giancarlo, former Chairman of the Commodity Futures Trading Commission (CFTC), recently suggested that the SEC may drop its lawsuit against Ripple. In a FOX Business interview, Giancarlo, also known as “Crypto Dad,” discussed the possibility of the SEC re-evaluating the case, particularly following the trial court’s August ruling.
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!
The Court’s Ruling: A Turning Point for Ripple
In the trial court’s decision, the judge ruled that XRP, in itself, is not a security. However, the court did determine that institutional sales of XRP could be classified as securities. The case was pivotal for Ripple, as it set a precedent for how XRP transactions might be treated in future regulatory decisions.
After the ruling, the SEC appealed the decision, particularly the part it lost. Ripple also filed a counter-appeal, challenging the court’s interpretation of institutional sales. Both parties are preparing for further legal battles, with the SEC’s appeal brief due on January 15, 2025.
Trump’s Influence on the Ripple Case
Eleanor Terrett of FOX Business reported on Tuesday that the Trump administration wants the CFTC to head digital asset regulation. With Donald Trump’s potential return to the presidency, there’s speculation that a new SEC leadership could push for a reassessment of the Ripple case. If a pro-crypto SEC chair is appointed, it might signal a fresh approach to crypto regulation, possibly leading to a dismissal of the lawsuit.
This speculation gained momentum following the news that current SEC Chair Gary Gensler plans to step down in January 2025. Trump’s transition team is reportedly in discussions with crypto stakeholders to choose a new SEC chair who could favor the crypto industry.
The Possibility of a Settlement
Jeremy Hogan and Fred Rispoli, two U.S. attorneys, recently discussed the potential outcomes of the SEC’s case against Ripple. Hogan believes that the SEC may eventually drop many non-fraud crypto lawsuits, including the Ripple case, and settle for the previously ruled $125 million penalty. He predicts this could happen before summer, but not by January. On the other hand, Rispoli thinks it’s unlikely the SEC will drop the case entirely.
He suggests the $125 million penalty is the best outcome the SEC can hope for and believes the new leadership will eventually recognize the case as flawed and settle it.
Although, these are all speculations there is a hope that Trump may change the crypto game.