Former CFTC Chairman Says: XRP Is Not a Security, SEC's Regulatory Framework May Need Adjustment

2025-12-04 20:48:20

Abstract generation in progress

[Bitpush] Former CFTC Chairman Christopher Giancarlo has recently spoken out—he says XRP is not a security at all.

The former chairman, who now works at Willkie Farr & Gallagher, wrote an analysis article for the International Financial Law Review. The core viewpoint? XRP does not meet the definition of an “investment contract,” and by the SEC’s own Howey Test standards, it should not be classified as a security. The article also mentions that Willkie represents some of Ripple’s legal matters, and Ripple provided some factual materials to help write the article.

Giancarlo and his co-author Bahlke offer a straightforward reason: how could XRP possibly be an investment contract? Ripple has no agreements or arrangements with the vast majority of XRP holders. More importantly, in the contracts Ripple has signed, ordinary XRP holders are explicitly excluded from being third-party beneficiaries.

Now, the SEC may have to rethink its regulatory logic.

XRP0.04%

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MidnightSeller

· 12-05 14:39

Oh no, the former CFTC chairman is backing XRP. The SEC must be getting nervous now—how are they going to justify the Howey Test this time?

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UncleWhale

· 12-04 21:17

Haha, here we go again—former officials endorsing, Ripple paying for articles, this move is really something else. But to be fair, the Howey Test is indeed a bit outdated, and the SEC’s standards may not really fit on-chain assets... In the end, the XRP matter will still be decided by the courts. No matter how persuasive the articles are, they're not court rulings.

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shadowy_supercoder

· 12-04 21:00

Wait a minute, this guy is now working for Ripple and can still write articles claiming that XRP is not a security? Who would trust a paper with such a conflict of interest... But to be fair, the SEC’s logic is indeed a bit twisted.

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