The election results of the United States as well as the resignation of the Chairman of the SEC, Gary Gensler have driven the positive sentiment for the crypto market.
In July 2023, a decision surfaced in the market that XRP is not a security in some conditions. After the decision, the value of the cryptocurrency started to maintain a track.
At the time of writing the price of XRP is hovering around $2.44 and at the same time, the price of Solana is hovering around $228.92.
XRP has shown an outstanding performance with the onset of this month and has surpassed Solana (SOL) as well as Tether (USDT) to become the third largest cryptocurrency in terms of market capitalization.
At the press time, the market cap of XRP stands at $138.25 billion and the market cap of USDT and SOL stands at $134.23 and $108.09 billion respectively, making USDT the fourth largest cryptocurrency and SOL, the fifth-largest cryptocurrency in terms of market capitalization.
A dig into the history of Ripple Labs and its impact
Source: CoinMarketCap
Taking a dig into the history of Ripple Labs, it got sued by the Securities and Exchange Commission (SEC) of the United States claiming that XRP was an unregistered security in December 2020. At that time, XRP was the third-largest cryptocurrency, following Bitcoin and Ethereum by market capitalization.
The claim impacted the decision of the investors and they started to hesitate before investing in the cryptocurrency. Also, major exchanges decided to delist the cryptocurrency. Big crypto exchanges like Coinbase have put a halt to the trade of this crypto. This resulted in the shift of XRP to seventh place in terms of market capitalization for a prolonged period.
In July 2023, a decision surfaced in favor of the cryptocurrency that XRP is not a security in some conditions. After the decision, the value of the cryptocurrency started to maintain a track and followed an upward trajectory leading to increased market capitalization.
Impact of the election result and departure of Gensler
The election results of the United States as well as the resignation of the Chairman of the SEC, Gary Gensler have driven the positive market sentiment for the overall crypto market. In this wave, XRP has also benefited. Investors are speculating a more favorable regulatory environment for virtual assets under the Trump administration.
The SEC Chair, Gensler will be resigning from his post on January 20, 2025. Now everyone is waiting for the new Chair. The CEO of Coinbase has recently posted on X to make SEC Commissioner, Hester Pierce the new chairman. Another potential chairman that the market is currently speculating on is Mark Udeya, another current SEC commissioner, and Dan Gallagher, ex-commissioner at SEC.
Crypto analysts believe that the resignation of the current chair will benefit the industry and the regulatory pressure will be reduced over cryptocurrencies as well as exchanges. Adding more to this, Scott Bessent has been appointed as the new Treasury Secretary by Donald Trump and the CEO of Ripple has commended the president’s decision.
Source: CoinMarketCap
While nominating Bessent, Trump referred to him as the most pro-innovation, pro-crypto Treasury Secretary to date. And, the CEO called it a perfect pick. At the time of writing the price of XRP is hovering around $2.44 and at the same time, the price of Solana is hovering around $228.92.
