SEC to Drop Ripple-XRP Lawsuit? Former Regulator Predicts Major Shift

Ripple-XRP Lawsuit: SEC Expected to Withdraw Case, Says Ex-Regulator

Former Commodity Futures Trading Commission (CFTC) Chair Chris Giancarlo has boldly predicted that the U.S. Securities and Exchange Commission (SEC) will drop its high-profile lawsuit against Ripple. This potential regulatory shift could ignite a major rally for XRP, Ripple’s native cryptocurrency.

Chris Giancarlo’s Prediction

During an interview on Fox Business, Giancarlo, known as “Crypto Dad” for his support of blockchain technology, discussed the ongoing SEC lawsuit against Ripple.

“I think they should… I would bet they would,” Giancarlo stated, emphasizing the need for regulatory agencies to reconsider cases they have lost at the trial court level, reports News.Bitcoin.com.

Impact on XRP and the Crypto Market

The SEC’s lawsuit against Ripple, filed in December 2020, accused the company of raising $1.3 billion through unregistered securities offerings by selling XRP. A landmark ruling in July 2023 concluded that XRP is not inherently a security, especially when sold on secondary markets.

This decision has already positively impacted XRP’s price, and the potential dropping of the lawsuit could further boost investor confidence and market sentiment.

A New Regulatory Environment

Giancarlo’s prediction comes amid growing optimism in the crypto community following Donald Trump’s election victory. The incoming administration is expected to adopt a more crypto-friendly stance, which could lead to significant changes in the regulatory landscape.

“The political motive for continuing a near hopeless appeal will largely disappear when its main internal SEC enabler Gary Gensler resigns on January 20, 2025,” said pro-XRP lawyer Bill Morgan.

Ripple’s Legal Battle

The Ripple case has been a pivotal legal battle in the cryptocurrency world, testing the boundaries of securities laws.

The SEC’s potential retreat from its appeal against Ripple could signal a broader shift in crypto regulation. “I would recommend that it’s time for regulatory agencies to drop a lot of these cases where they’ve lost at the trial court,” Giancarlo added.