In an interview with FOX Business on Tuesday, former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo, a leading contender for the role of White House “crypto czar” in the second Trump administration, expressed his belief that the Securities and Exchange Commission (SEC) will drop its case against Ripple Labs.
Giancarlo, known in the industry as “Crypto Dad” for his forward-thinking views on digital assets, discussed the future of US crypto policy and the impact of Trump’s return to the White House. He highlighted the need for a cohesive strategy to make the United States the global leader in cryptocurrency and blockchain technology.
SEC Is Likely To Drop The Ripple Case And Others
The interview shed light on the evolving stance of former President Donald Trump toward cryptocurrencies. Giancarlo noted that during his tenure, Trump’s primary focus was on achieving 4% economic growth, asking agencies, “What are you guys doing to get us to 4% economic growth?”
Giancarlo suggested that Trump now sees crypto and other emerging technologies like artificial intelligence and quantum computing as avenues to “turbocharge the United States economy.” He added, “Trump wants to create the second industrial revolution in America, and he thinks crypto is one of the part of it.”
Addressing the ongoing legal battle between the SEC and Ripple Labs, Giancarlo revealed his perspective on the matter. Prior to the lawsuit, he had authored a law review article arguing that XRP should not be classified as a security under US law.
This view partially aligns with Judge Torres summary judgment from July 2023 that found certain sales of XRP did not constitute securities transactions. “I wrote a definitive law review article right before that case was brought, arguing that XRP was not a security subject to SEC. It turned out that the judge who ruled in that case sided with the view or half of it,” Giancarlo remarked.
Giancarlo also opined on how he believes the ongoing SEC cases like the Ripple case should be handled after Gary Gensler leaves office. “I would recommend that it’s time for regulatory agencies to drop a lot of these cases where they’ve lost at the trial court,” Giancarlo said.
When pressed on whether the SEC would drop its appeal against Ripple Labs, he affirmed, “I think they should and they will […] I would bet they would.”
Giancarlo was critical of the outgoing SEC Chairman Gary Gensler, citing issues such as talent attrition, low morale, and overreach in enforcement actions. He mentioned that the SEC had been “sanctioned by a federal court for lying to the court,” which he believes undermines the agency’s integrity.
“Perhaps even worse than I found at the CFTC,” Giancarlo said, referring to the state of the SEC. “Talent has left. What’s left are dead-enders, people that don’t want to come to the office.”
Discussing the possibility of new leadership at the SEC, Giancarlo expressed hope that the next chair would have “both institutional knowledge of the building and a deep commitment to innovation and the crypto agenda.” He suggested names like his former law school classmate Paul Atkins and Kevin Hassett as strong candidates for the position.
Giancarlo emphasized the importance of a coordinated approach to fulfill Trump’s promises on crypto policy. He advocated for the establishment of a “crypto council” and highlighted the need for collaboration across various government agencies, including tax authorities and the White House Counsel’s Office. “A lot of thought needs to go into how this is structured to achieve President Trump’s promises,” he concluded.
At press time, XRP traded at $1.45.
Featured image from YouTube, chart from TradingView.com
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