Ex-Commodity Futures Trading Commission chair Chris Giancarlo has predicted that the U.S. Securities and Exchange Commission is likely to end its simmering lawsuit with blockchain payments startup Ripple, with its chair Gary Gensler set to resign in January.
Will Trump’s SEC Close XRP Lawsuit?
During a recent interview at Fox Business, Giancarlo, who is affectionately known as “Crypto Dad”, said he would recommend regulatory agencies drop the vast majority of crypto cases where they have lost in the trial courts.
When asked whether he thinks the SEC will toss out its XRP case, he stated:Â
“I think they should drop the XRP case. I would think that they will.”
“Crypto Dad” @giancarloMKTS, Says he believes the SEC should drop the case against @Ripple and believes they Will.
pic.twitter.com/elans7a7Ad
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) November 27, 2024
While XRP has been one of the top cryptocurrencies by market cap since it went live in 2013, the SEC alleged the asset is a security in a lawsuit brought in 2020. Even though a New York judge had declared in July 2023 that the token is “not necessarily a security on its face,” a sense of regulatory uncertainty lingered, with the SEC appealing the decision in October.
SEC Chairman Gary Gensler announced recently that he intends to step down from his role on January 20th. With a change in SEC leadership likely to bring about a crypto-friendly regime, many believe the Commission is not going to continue with the lawsuit.
With the likelihood of a favorable resolution of the case and the potential for a more crypto-friendly regulatory environment under Trump’s administration, confidence in XRP is growing. Investors are awakening to this potential, spurring the current excitement and upward price momentum.
As of this writing, XRP’s price has increased 9.6% over the past day, with the asset trading at $1.49.
Current SEC’s War On Crypto
Besides Ripple, the SEC under Gary Gensler has also lodged enforcement actions against a raft of other prominent companies the likes of Coinbase, Binance, Kraken, OpenSea, Consensys, and Robinhood.
It’s worth mentioning that Ripple’s top legal head, Stuart Alderoty, recently called on the next SEC boss to drop all non-fraud crypto cases on the first day of office.
Meanwhile, Giancarlo recently clarified that he is not in the race to replace Gensler despite rumors claiming he was seeking the agency’s top job. Robinhood’s Chief Legal Officer Dan Gallagher has also made it clear that he isn’t interested in serving as the next chairman of the SEC.
