Uncle Sam will let go of Ripple. Former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo, a prominent candidate for the role of White House “crypto czar” in the potential next Trump administration, voiced his expectation that the Securities and Exchange Commission (SEC) will abandon its litigation against Ripple Labs and XRP.
In an enlightening conversation on FOX Business, he laid out his vision for U.S. crypto policy and speculated on the implications of Donald Trump’s potential return to the presidency.
Giancarlo advocated for a unified approach designed to enable the United States to lead globally in cryptocurrency and blockchain innovation.
The discourse highlighted an intriguing shift in former President Donald Trump's attitude toward digital currencies. During his previous term, Trump emphasized achieving 4% economic growth and frequently challenged agencies to contribute towards this target. Giancarlo indicated that Trump's perspective has evolved, now viewing cryptocurrencies, along with technologies like artificial intelligence and quantum computing, as essential for driving significant economic progress. “Trump envisions a second industrial revolution in America, with crypto as a pivotal component,” he stated.
Turning to the current legal struggle between the SEC and Ripple Labs, Giancarlo shared his insights. Before the commencement of the lawsuit, he had published a scholarly article asserting that XRP should not be classified as a security under U.S. law. His viewpoint partially resonates with Judge Torres’ July 2023 ruling, which determined that certain XRP transactions are not securities. “I penned a decisive article arguing XRP was not a security under SEC jurisdiction. The judge in that case supported this view, at least in part,” Giancarlo commented.
Giancarlo also discussed his stance on handling ongoing SEC cases post-Gary Gensler’s tenure. He stated, “Regulatory bodies should consider dropping cases where they’ve faced setbacks in trial courts.” When asked if the SEC will retract its appeal against Ripple Labs, he confidently asserted, “I believe they should, and they will [...] I’d wager on it.”
Giancarlo criticized the outgoing SEC Chairman Gary Gensler, mentioning issues such as attrition of talent, diminished morale, and excessive enforcement. He pointed out a federal court’s sanction against the SEC for dishonesty, which he claims diminishes the agency’s credibility. Reflecting on the SEC's challenges, Giancarlo said, “Talent has departed. What remains are those uninterested in office presence.”
Considering new leadership at the SEC, Giancarlo hopes for a chair with both extensive institutional knowledge and a dedication to innovation and crypto advancement. He suggested Paul Atkins, a former law school peer, and Kevin Hassett as potential leaders.
Giancarlo stressed the necessity of a strategic approach to actualize Trump's crypto policy commitments. He proposed establishing a “crypto council” and underscored the importance of inter-agency collaboration, involving tax authorities and the White House Counsel’s Office. “Much thought is required in structuring this to align with President Trump’s visions,” he concluded. At the time of reporting, XRP was valued at $1.45.