As the Ripple vs SEC legal battle continues, several key industry figures have predicted an imminent end to the saga, raising optimism among the XRP community. The case which began in December 2020, accused Ripple of violating Federal securities laws by offering unregistered securities in XRP to retail and institutional investors.
Meanwhile, a United States court ruled on the status of XRP, declaring it and its secondary sales as non-security. However, the same court determined that the institutional sales of XRP qualify as an investment contract and Ripple was ordered to pay $125 million in civil penalty. On this basis, both parties have filed an appeal to challenge the aspects of the ruling they do not find favorable.
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Meanwhile, the XRP community has ignited hopes for something positive since a pro-crypto administration, led by Donald Trump, would take office on January 20, 2025. Also, on the same day, the current SEC chairman, Gary Gensler would step down from office, potentially leading to a crypto-friendly chairman taking over.
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While these possibilities are pending, several prominent figures in the industry have guessed that the case would be dismissed once the new regime takes office. The most recent person to key into this optimism is Chris Giancarlo, the former chairman of the Commodity Futures Trading Commission (CFTC).
SEC to Drop Case Against Ripple
Appearing in a recent interview on Fox Business, Giancarlo opined that the SEC might drop the case once the Trump administration takes over. He noted that he had previously written an article during his term where he declared that XRP was not a security before the case was brought before the court.
Moreover, Giancarlo advised regulatory agencies to drop most of the cases where they have already lost in the trial court since it is putting a lot of pressure on the crypto industry. When asked directly if he thinks the case would be dropped, Giancarlo replied that he guarantees it would.
“If you’re a betting man would they drop the XRP case?” asked the presenter, … “I would bet they would,” Giancarlo replied.
Previously, Jeremy Hogan and Fred Rispoli argued about the case. Hogan believes that the SEC might dismiss all non-fraud-related lawsuits filed over the years, suggesting that Ripple could eventually pay the $125 million to the SEC as a settlement.
However, Rispoli said that it would be unrealistic to drop the case, adding that the $125 million civil penalty is the biggest win that the SEC achieved in the lawsuit. He also predicted that the new leadership of the SEC would perceive the case as “idiotic” and be forced to settle at some point.
Read Also: Ripple vs SEC Lawsuit May Quietly End in 2025 Following This New Update
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.