Former CFTC Chairman Chris Giancarlo suggested that the SEC might drop its appeal against Ripple following court defeats.
The Legal Battle's History
The lawsuit against Ripple, initiated in December 2020, has been a significant case in the crypto industry. The SEC accuses the company of selling XRP as an unregistered security. In July 2023, a federal judge ruled that XRP is not inherently a security in secondary market transactions, but Ripple had to pay a $125 million fine. Both Ripple and the SEC have filed cross-appeals.
Ripple CEO's Statements
Ripple CEO Brad Garlinghouse has critiqued the Biden administration for its 'hostile' approach towards the crypto industry. He hopes that Trump’s administration would introduce clearer and more supportive regulations, aiding the U.S. in reclaiming its leadership in digital assets.
The Future of Crypto Regulation
Trump’s election has sparked optimism in the crypto community. Paul Atkins, a former SEC commissioner known for his pro-innovation stance, is reported to be a leading candidate to replace SEC Chair Gary Gensler. Criticism of the SEC involves 'regulation by enforcement,' which critics argue stifles innovation.
Giancarlo's comments underscore the need to reconsider the Ripple case to foster a more constructive regulatory environment in the U.S.
