Former CFTC Chair Suggests SEC May Drop Ripple Lawsuit

According to ShibDaily, Christopher Giancarlo, the former Chairman of the Commodity Futures Trading Commission (CFTC), has indicated that the U.S. Securities and Exchange Commission (SEC) might consider dropping its lawsuit against Ripple. In a recent interview with FOX Business, Giancarlo discussed the broader landscape of cryptocurrency regulation and the increasing influence of the CFTC in this domain. During the interview, FOX Business Senior Correspondent Charles Gasparino asked Giancarlo about the likelihood of the SEC reassessing its legal stance against Ripple, especially in the context of a potential Donald Trump presidency. Giancarlo suggested that the SEC should review cases it has lost at the trial court level and contemplate dismissing them. His comments suggest that new leadership at the SEC could decide to abandon the Ripple case, particularly following a recent court decision. The SEC initiated legal action against Ripple Labs in December 2020, accusing the company of raising $1.3 billion through the sale of XRP, which it claimed was an unregistered security. In July 2023, U.S. District Judge Analisa Torres delivered a mixed ruling, stating that Ripple’s programmatic XRP sales via cryptocurrency exchanges did not qualify as securities transactions under federal law. However, she also determined that Ripple’s direct sales of XRP to institutional investors did constitute securities transactions. Both Ripple and the SEC have filed appeals, with more detailed arguments expected in the coming months. Giancarlo, who is often referred to as “Crypto Dad,” is reportedly a leading candidate for the role of “Crypto Czar” under President-elect Donald Trump. Trump’s transition team is considering the establishment of a new White House position aimed at coordinating cryptocurrency policy. This role, potentially titled “Crypto Czar,” would provide direct access to President-elect Trump and serve as a central policy coordinator across federal agencies. The article emphasizes that it is intended for informational purposes only and should not be interpreted as financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.