FOX Business Senior Correspondent Says SEC Might Drop Ripple Case, But Criticizes Ruling

FOX Business Senior Correspondent Charles Gasparino criticizes the U.S. SEC for its handling of the Ripple lawsuit and suggests that the case could be dropped. 

Gasparino shared this view in his recent appearance on The POMP Podcast. The prominent journalist characterized the securities agency’s handling of the Ripple lawsuit as gross overreach. 

In his view, the lawsuit stems from unclear regulations for the United States crypto industry and has pushed Ripple’s innovative payment technology overseas. 

Gasparino Criticizes Ripple Ruling

Despite criticizing the SEC, he also called Judge Analisa Torres’s ruling in the lawsuit “idiotic.” The judge issued her decision under three categories: programmatic sales, other distributions, and institutional sales. 

While the judge declared that Ripple violated the law through its sales of XRP to U.S. institutional clients, she emphasized that programmatic sales and other distributions of the token were not investment contracts. 

Reacting, Gasparino suggested that the ruling creates a precedent where institutional clients receive more disclosure than retail investors. According to him, this precedence tends to weaken the protection of retail investors in the United States. 

Potential Outcome of the Ripple Case

In the meantime, there are speculations that Donald Trump’s reelection as the 47th U.S. President could significantly impact the outcome of the ongoing appeal. 

Notably, Gasparino shares this sentiment, suggesting that the SEC’s approach to the case might change due to a shift in administration, particularly Trump’s presidency and the appointment of pro-crypto advocate Paul Atkins as SEC Chair.

Specifically, he suggested that the SEC could drop its appeal against Ripple or overturn the programmatic sales decision. 

Key Deadline to Watch Out For 

Meanwhile, the lawsuit is gearing up to commence fully in the Second Circuit Court of Appeal this month. 

In particular, the SEC must file its appellate brief before the January 15 deadline or risk having the lawsuit dismissed. Afterward, the leading crypto payments company will file its response, tackling the agency’s argument.  

Crypto Proponents Slam Gasparino

Meanwhile, several crypto enthusiasts have criticized Gasparino, accusing him of being biased in his views about the lawsuit. 

Tony Edward, the host of the Thinking Crypto podcast, asserted that Gasparino’s criticism of Judge Torres’ ruling shows that he wants Ripple to lose the lawsuit. 

Furthermore, Australian-based lawyer Bill Morgan slammed Gasparino’s understanding of crypto, particularly XRP. According to him, the judge specifically ruled on Ripple’s programmatic sales of XRP, not the broader secondary market transactions of the token. 

However, Gasparino maintained that he is neutral in his coverage of the lawsuit, emphasizing his commitment to objective reporting.