Ripple’s XRP token recorded a 20% increase, hitting a high of $0.838 hours after Gary Gensler, the current Securities and Exchange Commission Chairman (SEC) signaled a potential resignation.
The surge comes amid a wide-market selloff, with Bitcoin retreating below $88,000. Crypto prices look strong, but risks remain in the market.
During a speech at the Practicing Law Institute’s annual Institute on Securities Regulation on November 14, Gensler expressed his gratitude for his time at the SEC. “It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world,” he said.
Just A Matter Of Time
Many interpreted his statement as a farewell message and the tone of his speech suggested that he may be preparing to step down. The speech has quickly sparked wild speculation about his departure from the SEC’s leadership role, especially following the reelection of Donald Trump, who said he would “fire” Gensler on day one of presidency.
SEC chairs have historically resigned after changes in administration. Jay Clayton, who served as SEC Chairman during Trump’s first term, announced his resignation on November 16, a few days after Joe Biden’s election victory.
Another example is Mary Jo White, who confirmed her resignation shortly after Trump’s election victory in November 2016. Gensler’s potential departure will not be unexpected as it is consistent with the tradition of SEC chairs stepping down following a change in administration.
John Reed Stark, a former SEC enforcement attorney, recently called for Gensler to step down and suggested that SEC staff should prepare a list detailing all ongoing crypto-related investigations, litigation, and rule-making efforts
“So the new Chair can swiftly grind them all to a screeching halt,” the attorney stated. “Like it or not, the people have spoken and their will must be respected,” the attorney added.”
A New Direction
If Gensler resigns and investigations are paused, it could lead to a revitalization of the crypto market. The crypto community is hopeful that a new SEC chair could lead to a more crypto-friendly regulatory approach.
According to Consensys CEO Joe Lubin, ongoing legal battles between crypto firms and US securities regulators are likely to dissipate following Donald Trump’s election as president. He suggests the industry will save millions with potential regulatory changes.
For Ripple, the potential shift in SEC’s leadership could alleviate some of the legal burdens currently facing Ripple and positively impact XRP’s market position.
Although there is no official announcement from the SEC regarding the matter, XRP has already reacted positively to the recent speculation.
XRP’s relisting on Robinhood’s US platform is another positive factor contributing to its potential growth. Following the quiet resumption of XRP trading for UK customers in September, Robinhood has now re-enabled trading for US customers.
Last July, Coinbase announced the relisting of XRP following a court ruling that determined XRP sales to retail investors were not deemed securities. In May this year, the exchange also reinstated trading for XRP in New York.
Both Robinhood and Coinbase decided to delist XRP from their lists of supporting cryptocurrencies after the SEC initiated its lawsuit against Ripple Labs.
XRP surged from $0.6 to above $0.72 during Wednesday trading session after Robinhood’s announcement. It is now trading at around $0.79, marking a slight correction in the last three hours but still registering a 55% increase in the last seven days.
While Ripple’s token benefited from the recent news, many other cryptocurrencies suffered from market corrections.
Bitcoin was down around 2% to below $88,000. The leading cryptocurrency recently peaked at $93,000 amid massive Bitcoin ETF inflows.
Meanwhile, Ether dipped 4%, Solana was down 3.5%, and Dogecoin dropped 6%. The total cryptocurrency market cap dropped 4% to $3.04 trillion.
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