Christopher Giancarlo, the former chair of the U.S. Commodity Futures Trading Commission (CFTC), has suggested that the incoming chair of the U.S. Securities and Exchange Commission (SEC) may reconsider the ongoing Ripple case.
According to a report by Fox Business, Giancarlo indicated that the SEC might revisit the case details, particularly after the court ruling in August that Ripple’s XRP sales on secondary markets did not violate securities regulations. This development comes as speculation grows following the recent resignation of SEC Chair Gary Gensler.
Ripple case under review amid legal appeals
BREAKING: LEADING CANDIDATE FOR WHITE HOUSE “CRYPTO CZAR” STATES RIPPLE $XRP CASE WILL BE DISMISSED! “If you’re a betting man would they drop the XRP case?” – @CGasparino “I would bet they would.” – @giancarloMKTS Do you believe the SEC leadership under President Trump… pic.twitter.com/6YRNJ1hwdh
— Good Morning Crypto (@AbsGMCrypto) November 26, 2024
The SEC vs. Ripple lawsuit began in December 2020 and saw a partial ruling in August when Judge Annalisa Torres found that Ripple’s XRP sales on secondary markets were compliant with regulations. However, Ripple was ordered to pay $125 million in fines for selling XRP to institutional investors. Despite the ruling, the SEC filed an appeal in early October and later submitted another appeal on October 18, challenging additional aspects of the case.
Ripple also countered with an appeal on October 10, contesting the SEC’s claims. The cryptocurrency community has closely followed the case, with Ripple executives Brad Garlinghouse and Stuart Alderoty expressing optimism that the lawsuit is nearing its conclusion. A recent poll on X by Good Morning Crypto showed that 94% of respondents believe the case will ultimately be dismissed.
Former CFTC chair urges broader reassessment of Crypto cases
In a conversation with Fox Business correspondent Charles Gasparino, Giancarlo suggested that the SEC should reconsider the Ripple case and other regulatory actions against crypto firms. He believes the commission should drop many cases involving cryptocurrency companies, arguing that such enforcement actions often ignore the unique nature of the crypto market.
Over the past year, centralized exchanges like Kraken, KuCoin, and Coinbase have faced lawsuits from the SEC. The regulator has repeatedly emphasized that crypto firms must comply with existing rules to protect investors. Giancarlo, known for his pro-crypto position, reiterated that XRP was never a security and should not have been subject to the SEC’s scrutiny.
XRP price surges amid SEC chair resignation
The resignation of SEC Chair Gary Gensler, announced on November 21, has sparked optimism within the crypto community. Gensler took office in April 2021 and will officially step down on January 20. His departure has been seen as a potential shift toward more crypto-friendly leadership at the SEC.
Following the news, XRP’s price surged by 25%, reaching $1.43, the highest level since May 2021. XRP has climbed to $1.55, with a weekly gain of over 10%. Market analysts have attributed the price surge to growing investor confidence that the Ripple case might be dropped under new SEC leadership. Additionally, several altcoins have gained momentum as the market anticipates a reduced risk of regulatory crackdowns.
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