Christopher Giancarlo, former Chairman of the Commodity Futures Trading Commission (CFTC), has suggested that the U.S. Securities and Exchange Commission (SEC) could decide to drop its ongoing lawsuit against Ripple.
Giancarlo shared this perspective during a recent interview on FOX Business, where he discussed broader issues related to cryptocurrency regulation and the evolving role of the CFTC in overseeing the industry.
SEC Might Withdraw Ripple Case
During the interview, Giancarlo was asked whether the SEC might reconsider its legal action against Ripple, particularly if Donald Trump were to assume the presidency.
In response, Giancarlo advised that the SEC evaluate the cases it already lost at the trial court level and consider dismissing them. When asked by FOX Business Senior Correspondent Charles Gasparino to provide a more definitive stance, Giancarlo said they would.
This statement reflects Giancarlo’s expectation that future SEC leadership may review and potentially dismiss the Ripple case, particularly in light of the trial court’s recent ruling. The court delivered its final judgment in August, and Giancarlo’s comments highlight the possibility of a shift in the SEC’s stance under new leadership.
Background of the SEC Appeal
In its ruling, the court upheld a previous summary judgment issued in July, determining that while Ripple’s institutional sales of XRP were deemed securities, programmatic sales and other distributions of XRP were not. The court also clarified that XRP does not meet the definition of security.
Despite the court’s decision, the SEC appealed to overturn the portions of the ruling it disagreed with. Ripple also filed a counter-appeal, disputing the court’s conclusion on institutional sales. Both parties have submitted preliminary arguments, and the SEC is expected to file its appeal brief by January 15, 2025.
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Trump Administration’s Potential Influence
Speculation has intensified about the future of the Ripple lawsuit following Donald Trump’s projected return to the presidency. Reports suggest that the Ripple case may be dismissed early, especially after SEC Chair Gary Gensler’s recent resignation announcement, scheduled
Trump’s transition team is reportedly considering appointing a pro-crypto candidate to replace Gensler. According to WIRED, the team is actively consulting with cryptocurrency industry stakeholders to identify suitable candidates. Should Trump select a pro-crypto SEC chair, the commission may reconsider its stance on the Ripple lawsuit and potentially drop the case.
While some legal experts believe a settlement between the SEC and Ripple is possible, it remains uncertain. Pro-XRP attorney Jeremy Hogan suggested that the case could conclude with Ripple agreeing to pay approximately $125 million. However, no definitive agreement has been reached as of now.
The possibility of the SEC dropping its lawsuit against Ripple hinges on various factors, including leadership changes within the commission and the outcome of ongoing appeals. With a potential shift in regulatory priorities under a new administration, the future of the Ripple case remains uncertain but closely watched by the cryptocurrency community.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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