- Chris Giancarlo predicts the SEC may drop its Ripple lawsuit if Trump appoints pro-crypto leadership.
- The SEC and Ripple have filed appeals, and the next major filing is due in January 2025.
Chris Giancarlo, former Chairman of the Commodity Futures Trading Commission (CFTC), has addressed the proposed Bitcoin reserve initiative and broader crypto policies that may emerge under Donald Trump’s administration. In an interview with Fox Business’ Charles Gasparino, Giancarlo laid out major problems and prospects for the pro-crypto agenda.
BREAKING: LEADING CANDIDATE FOR WHITE HOUSE “CRYPTO CZAR” STATES RIPPLE $XRP CASE WILL BE DISMISSED!
“If you’re a betting man would they drop the XRP case?” – @CGasparino
“I would bet they would.” – @giancarloMKTS
Do you believe the SEC leadership under President Trump… pic.twitter.com/6YRNJ1hwdh
— Good Morning Crypto (@AbsGMCrypto) November 26, 2024
Bitcoin Reserve Initiative Faces Complex Challenges
Giancarlo, also known as the ‘Crypto Dad,’ explained that building a Bitcoin reserve is a very challenging task. Despite not having a one-on-one conversation with Donald Trump, who is said to secretly want him as the ‘Crypto Czar,’ he mentioned that Mar-a-Lago discussions are about crypto strategies.
Some of the proposals include the following: permission for individuals to hold their digital assets, formation of a crypto council, and establishment of a Bitcoin reserve. However, Giancarlo pointed out that these measures would take much effort to implement. A major challenge is the identification of skilled personnel to spearhead these programmes.
Giancarlo also pointed out that only those who have prior experience in developing profitable crypto companies should be considered for the position. However, these candidates may have some concerns regarding the requirement to disclose assets and the possible divestment demands that may arise from such positions. He also confirmed that Trump wants to explore cryptocurrency as part of his agenda to strengthen the economy and expand the use of technologies such as cryptocurrency and artificial intelligence.
In the interview, the Ripple lawsuit with the SEC was also discussed. Giancarlo stated that the Trump administration could seek to have the lawsuit against the company dismissed, given that the current administration is more favourable to cryptocurrencies.
In terms of SEC leadership, Giancarlo proposed that Paul Atkins, another former SEC Commissioner, take over from the current chairman, Gary Gensler. Giancarlo opted not to assume the position himself, noting that the challenges of talent deficit and union relations would come with the job.
SEC Leadership Transition Could Affect Strategy
The SEC is likely to undergo leadership changes after the present chair, Gary Gensler, submitted his resignation on January 20, 2025. As reported by the sources, Trump’s transition team is considering candidates favourable to cryptocurrency for the position of Gensler, which may alter the SEC’s stance on cryptocurrency regulation.
The SEC and Ripple have each filed an appeal of the trial court’s decision. The SEC wants the ruling concerning the programmatic sales of XRP reversed while Ripple is trying to prevent the institutional sales from being categorized as securities. The next legal event date to look for is on the 15th of January 2025 when the SEC is expected to file its appeal brief.
Analysts argue that the conflict can be brought to an end by a settlement. Pro-crypto attorney Jeremy Hogan suggested that Ripple could agree to pay the $125 million judgment and bring the case to an end. However, no clear decision has been made.
