Former CFTC Chairman Predicts SEC Will Drop Lawsuit Against Ripple

Former CFTC Chairman Chris Giancarlo has predicted that the U.S. Securities and Exchange Commission (SEC) is likely to abandon its lawsuit against Ripple (XRP). He believes that with the leadership change at the SEC, especially as Gary Gensler is expected to resign in January 2025, the agency may not continue its prolonged legal battle with Ripple.

The increased interest around this lawsuit emerged after a court ruling in August, which affirmed that XRP, while not a security, could be considered a security in the case of institutional sales. If a new SEC Chairman with a friendly stance towards cryptocurrency is appointed, this could prompt a reconsideration of the lawsuit and even lead to the SEC retracting the charges against Ripple.

The future of this lawsuit remains uncertain, but the optimism from Giancarlo along with changes in administration could greatly influence the SEC's next decision.