Former CFTC Head Predicts SEC Will Drop Ripple Case

During a recent interview with FOX Business, former CFTC Chairman Chris Giancarlo, known as "Crypto Dad" for his progressive stance on digital assets, shared his views on the future of U.S. cryptocurrency policy.

He expressed confidence that the SEC will eventually drop its legal action against Ripple Labs, marking a significant shift in the ongoing regulatory battle.

Giancarlo, who has been considered a potential candidate for the role of White House “crypto czar” should Trump return to office, emphasized the importance of the U.S. taking a unified approach to lead the global cryptocurrency and blockchain industries. He also noted that Trump now sees technologies like crypto, AI, and quantum computing as crucial tools for accelerating the U.S. economy, potentially sparking a new industrial revolution.

Giancarlo, who authored a legal piece before the SEC’s case against Ripple, had previously argued that XRP should not be classified as a security. This aligns with Judge Torres’ July 2023 ruling, which found that certain XRP transactions did not qualify as securities sales. Reflecting on the broader SEC legal landscape, Giancarlo believes that once Gary Gensler steps down as SEC Chairman, the agency should drop cases where it has been unsuccessful in court. Giancarlo is especially critical of Gensler’s leadership, citing high turnover, diminished morale, and overreach in enforcement actions.

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Looking forward, Giancarlo advocates for the creation of a “crypto council” to ensure a coordinated, strategic approach to cryptocurrency policy under the next administration. He suggested potential candidates for SEC leadership, such as Paul Atkins and Kevin Hassett, who he believes would bring both expertise and a commitment to innovation. He emphasized that a thoughtful, cross-agency effort would be necessary to fulfill Trump’s promises on crypto, positioning the U.S. as a global leader in the space.

Alexander Zdravkov