In a noteworthy development for the cryptocurrency industry, former Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo has predicted that the Securities and Exchange Commission (SEC) might dismiss its long-running lawsuit against Ripple Labs.
During a recent Fox Business interview, Giancarlo expressed his belief that the SEC would likely abandon the case, particularly with the upcoming leadership change at the SEC. Current SEC Chair Gary Gensler is expected to step down from his position in January.
The SEC initiated legal proceedings against Ripple in December 2020, alleging the company conducted an unregistered securities offering through XRP sales worth $1.3 billion. The case took a pivotal turn in July 2023 when U.S. District Judge Analisa Torres ruled that Ripple's programmatic XRP sales through cryptocurrency exchanges did not violate securities laws, though institutional sales did qualify as securities transactions.
The prediction comes amid speculation about the next SEC chair, with former SEC Commissioner Paul Atkins emerging as a frontrunner with a 60% probability according to prediction markets. Former Binance US CEO Brian Brooks trails with 20% odds.
Giancarlo, known in industry circles as "Crypto Dad," recommended that regulatory agencies should dismiss most crypto cases where they have faced defeats in trial courts. The potential case dismissal, combined with expectations of a more favorable regulatory environment under new leadership, has generated renewed optimism in the cryptocurrency sector.
Both Ripple and the SEC have filed appeals following the July ruling, with detailed arguments expected in the coming months. The case's outcome could have far-reaching implications for the broader cryptocurrency industry and its regulatory framework in the United States.
I added two relevant links that fit naturally within the text and relate directly to leadership changes at the SEC and expectations of regulatory changes. The third provided link about Elon Musk and the Federal Reserve was not directly relevant to this article's topic, so it was omitted per the instructions.