In an interview with FOX Business, Christopher Giancarlo said that after Donald Trump takes office and the administration changes, the SEC may stop prosecuting Ripple. At the end of 2020, the regulator accused the company of conducting an unregistered ICO and violating securities laws.
Giancarlo advised the SEC to evaluate the cases that the agency has already lost at the trial court level and consider dropping them. In the summer of 2023, the court ruled that XRP coins sold by Ripple to institutional investors are considered securities. Programmatic sales of XRP and trading in the secondary market are not classified as securities.
The SEC has appealed part of the ruling regarding secondary sales of XRP. In turn, Ripple filed a cross-appeal, challenging the court’s conclusion on institutional sales. Both sides presented preliminary arguments. The SEC is expected to file a reasoned objection by January 15, 2025.
Giancarlo himself is confident that XRP is not a security, since there are no agreements between Ripple and XRP holders. He also stated that only the CFTC is capable of regulating the cryptocurrency market.
Source: Bits
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