XRP price has recorded impressive gains as the market digested news of a leadership change at the U.S. Securities and Exchange Commission (#SEC ). Specifically, SEC Chairman Gary Gensler announced his plans to step down, which is expected to take place when President-elect Donald Trump takes office in January 2025.
The event pushed XRP to its highest price since May 2021, peaking at $1.49 on Friday morning. XRP is up 20% in the past 24 hours and has nearly tripled since Election Day, when it hovered around $0.50.
Reasons for Price Increase
Gensler, known for his hardline stance on cryptocurrencies, has been tough on Ripple Labs, a company closely involved with XRP. The SEC sued Ripple in 2020, alleging that XRP was an unregistered security. Although a federal judge later ruled that XRP “is not necessarily a security,” the case has dragged on and created significant uncertainty about the future of $XRP .
Gensler’s resignation raises hopes for a more friendly regulatory environment under the Trump administration. According to Juan Leon, Senior Investment Strategist at Bitwise, the change in leadership at the SEC could provide an opportunity for Ripple Labs to revive its business and settle the four-year-old lawsuit. He believes that the upcoming regulatory stability will help XRP grow stronger as a B2B blockchain payment network.
Driving Factors
In parallel with Gensler’s resignation, Ripple has expanded access to XRP in the United States. Earlier this month, the investment app Robinhood officially listed XRP, opening the way for retail investors to trade. In addition, Ripple also reached a settlement to pay a $125 million fine, instead of the $2 billion the SEC had previously sought, marking an important step in alleviating regulatory pressure.
According to Ripple’s chief legal officer, Stuart Alderoty, the SEC has intentionally maintained ambiguity in its regulations regarding XRP, but he believes the agency’s defeat in the lawsuit will put an end to that uncertainty.
Future Prospects
The XRP investor community is extremely optimistic. Connor McGlaughlin, an investor and YouTube content creator, said that the change in government and the possible end of the lawsuit with the SEC have increased confidence in XRP. He believes that the market is becoming more aware of the coin's growth potential, which is fueling the bullish momentum.
With a potentially more favorable regulatory environment and a strong increase in value in recent times, XRP is proving its position as one of the most notable digital assets of the current period.
