Former CFTC Chairman Chris Giancarlo has predicted that the Securities and Exchange Commission might dismiss the XRP lawsuit under Donald Trump’s administration. During a recent FOX Business interview, Giancarlo, often referred to as ‘Crypto Dad,’ recommended that regulatory agencies dismiss cases they’ve lost at trial.
When pressed by Senior Correspondent Charles Gasparino for a direct response regarding the Ripple case, Giancarlo stated definitively, “I would bet that they would.” This prediction gains significance in light of the current regulatory landscape and recent developments.
In the Ripple-SEC lawsuit, the trial court’s final verdict in August maintained its earlier summary judgment. It established that while institutional sales of XRP constituted securities, programmatic sales and other distributions did not. Importantly, the court determined that XRP itself is not a security.
The SEC’s response to this mixed ruling came after two months of internal deliberation. The agency filed an appeal to challenge the aspects it lost while Ripple reacted with a counter-appeal contesting the ruling on institutional sales. The SEC’s appeal brief is scheduled for January 15, 2025.
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The possibility of an early Ripple vs. SEC resolution has gained traction following SEC Chair Gary Gensler’s announced resignation. Gensler has announced that he will step down on January 20, 2024. Trump’s transition team is actively engaging with cryptocurrency stakeholders to select a pro-crypto candidate as Gensler’s successor.
In addition, legal experts, including attorneys Jeremy Hogan and Fred Rispoli, have echoed Giancarlo’s prediction.They stated that the Ripple case, alongside Coinbase and other cases in litigation, will likely be dismissed. Ripple’s Chief Legal Officer, Stuart Alderoty, has also dropped hints at an immediate resolution. Some speculation suggests the case might conclude with Ripple paying the $125 million judgment amount, though this remains unconfirmed.
The potential dismissal of the Ripple case could mark a major shift in the U.S. cryptocurrency regulation under Trump’s administration. With the president’s promised crypto-friendly policies and the likelihood of appointing a pro-crypto SEC chair, the regulatory landscape appears promising for the overall nation.
