XRP Soars 25% in Wake of Gary Gensler’s SEC Resignation

US SEC XRP

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

November 21, 2024

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Ripple’s native currency XRP jumped nearly 25% on Friday after SEC Chair Gary Gensler announced his resignation. The crypto asset last traded at $1.37, and is up 65.7% in the last week.

Known for his strict enforcement approach, Gensler will officially step down on Jan. 20, coinciding with President-elect Donald Trump’s inauguration.

Bitcoin’s price also surged following the announcement, inching close to $100k. This rise reflects growing optimism among crypto investors. They expect the new administration to create a more favorable regulatory environment for cryptocurrencies.

Cryptocurrencies like SOL, awaiting ETF approvals, stand to benefit from this regulatory change. The shift is expected to have a positive impact on their market performance.

Trump has indicated plans to nominate an SEC chair who supports cryptocurrencies. The goal is to introduce policies that encourage growth in the crypto industry.

Gensler’s Resignation Could Reshape Ripple’s Legal Fight Over XRP

Gensler’s departure marks a pivotal moment for Ripple’s XRP specifically, as the company remains embroiled in a legal battle with the SEC over allegations of unregistered security sales.

The SEC filed a lawsuit against Ripple Labs in Dec. 2020, alleging that the company sold XRP as an unregistered security. This legal action significantly impacted XRP’s market position and value, leading to its delisting from several exchanges and a sharp drop in price.

Ruling on XRP Sales Sparks Hope Amid Gensler’s Exit

In July 2023, a landmark ruling determined that XRP’s programmatic sales on exchanges were not investment contracts and, therefore, not securities, triggering a temporary price surge.

However, the SEC’s appeal soon after reignited uncertainty about XRP’s legal status.

Gensler’s exit may lead to the appeal being dropped or a settlement being reached, potentially removing regulatory uncertainty around XRP and boosting its market value.

Ripple and the SEC share a contentious history, defined by one of the crypto industry’s most closely followed legal battles.