XRP Soars 25% to 3-Year High as SEC Chair Gary Gensler Resigns, Sparking Hope for Ripple’s Legal Victory and Market Growth
XRP has surged over 25% in the past 24 hours, reaching its highest level since May 2021. The price of Ripple's token hit $1.43 after SEC Chairman Gary Gensler announced his resignation on Nov. 21, 2024, effective Jan. 20, 2025. This price increase comes as part of a broader rally in the crypto market, fueled in part by the optimism surrounding the re-election of Donald Trump. XRP has gained more than 150% in the past 30 days, up from about $0.5 where it had traded for much of the previous two years.
The departure of Gensler, who had been a key figure in the ongoing legal battle between Ripple and the SEC, is being seen as a potential turning point for the cryptocurrency. The SEC has accused Ripple of raising $1.3 billion through the sale of XRP, which it considers an unregistered security. The lawsuit, filed in 2020, led to XRP’s delisting from several exchanges and a drop in its value.
In July 2023, Ripple received a temporary victory when a judge ruled that XRP’s sales on exchanges were not securities, triggering a short-term price surge. However, the SEC appealed, continuing the uncertainty surrounding XRP's status. Gensler’s resignation has sparked speculation that the SEC might drop its appeal or reach a settlement with Ripple, reducing the regulatory uncertainty that has weighed on the token.
The news has also contributed to gains in other cryptocurrencies. Bitcoin, for example, is approaching the $100K mark, and analysts believe that regulatory changes under the incoming administration could be more favorable for the crypto industry. XRP’s recent price surge is supported by market sentiment that the regulatory environment for cryptocurrencies could improve, particularly with the potential launch of XRP exchange-traded funds (ETFs).
21Shares, Canary Capital and Bitwise have all filed applications for spot XRP ETFs, which could further drive institutional interest in the token. Ripple’s legal challenges with the SEC are likely to ease under the new administration, and some analysts predict that XRP could hit $2 soon.
Former SEC Commissioner Paul Atkins is widely regarded as a likely successor to Gensler. Known for his pro-crypto stance, Atkins could help shape a more supportive regulatory framework for digital assets, which would benefit Ripple and XRP’s long-term prospects. XRP is currently trading at $1.40, with a market cap of $80 billion, and it continues to attract investor attention.
