Former CFTC Chair Chris Giancarlo believes the SEC could drop its Ripple case as leadership changes.
SEC Chair Gary Gensler’s departure in January fuels optimism in the cryptocurrency sector.
Ripple urges the new SEC Chair to dismiss non-fraud crypto cases on their first day in office.
Chris Giancarlo, the former chairman of the Commodity Futures Trading Commission (CFTC), has predicted that the U.S. Securities and Exchange Commission (SEC) may drop its legal case against Ripple Labs. During a recent Fox Business appearance, Giancarlo said, "I would bet they would," in response to whether the SEC might end its long-running battle with Ripple. His statement comes amid speculation about significant leadership changes within the SEC, including the confirmed departure of Chair Gary Gensler in January.
https://twitter.com/BankXRP/status/1861777899356905881
Ripple and SEC’s Appeals Shape the Case’s Future
The SEC filed an appeal last month following a federal ruling partially favoring Ripple. Ripple responded with its cross-appeal, intensifying the ongoing legal dispute. Ripple’s top legal counsel, Stuart Alderoty, recently advocated for the dismissal of all non-fraud cryptocurrency cases by the incoming SEC leadership, emphasizing the need to shift regulatory priorities.
Optimism Grows with SEC Chair’s Exit
Gensler's departure has generated renewed hope within the cryptocurrency community, with expectations of a more favorable regulatory environment under new leadership. Former SEC Commissioner Paul Atkins currently leads prediction markets with a 60% likelihood of becoming the next SEC Chair, while former Binance US CEO Brian Brooks follows at 20%. Notably, Robinhood’s Chief Legal Officer, Dan Gallagher, has ruled out his candidacy for the position.
Ripple’s legal team remains vocal in its call for the SEC to focus on cases involving fraud rather than regulatory gray areas. Alderoty’s remarks underscore the broader frustration within the crypto industry over what many perceive as regulatory overreach. The departure of Gensler, who has faced criticism for targeting major crypto entities like Coinbase and Binance, further signals potential policy shifts.
Market Implications of Leadership Changes
The SEC’s next leader will play a crucial role in shaping the future of cryptocurrency regulation. With Gensler stepping down, the market anticipates a possible thaw in the SEC’s stance against Ripple and other blockchain innovators. Giancarlo’s confidence in a resolution adds momentum to these expectations, while Ripple’s legal battle remains a focal point for the industry.
