During the time of Gensler, the SEC was generally perceived as being hostile to the crypto industry.
For the first time in three years, Ripple’s XRP token XRP $2.20 24h volatility: 0.3% Market cap: $128.48 B Vol. 24h: $2.63 B crossed the $1.4 mark after seeing its value rise by 25% on Friday. The surge follows happenings around the US Securities and Exchange Commission (SEC).
Recently, the agency’s Chair Gary Gensler announced that his term will officially come to an end on January 20. As expected, the news has now sparked hopes that Gensler’s departure may mean that the regulatory body will change its current approach to crypto litigation. According to market analysts and experts, it is now looking more likely that a resolution will be reached in the long-standing SEC vs. Ripple lawsuit.
New SEC Leadership, New Opportunities for Ripple and XRP
During the time of Gensler, the SEC was generally perceived as being hostile to the crypto industry. The reason for this perception would be that the commission maintained a rather rigid approach to crypto regulation. This resulted in several lawsuits against crypto firms, including Ripple.
That said, Gensler’s upcoming exit has huge implications for the industry at large as it could create a more favorable legal environment for digital assets. Especially for Ripple, experts believe that this SEC’s transition could push the agency to reconsider pursuing an appeal in their ongoing case, opting for a settlement instead.
For instance, Consensys CEO Joe Lubin expects that ongoing SEC cases against crypto companies may be “dismissed or settled.” That is, considering the fact that the end of Gensler’s term is happening alongside a Trump presidency. Similarly, Pantera’s legal head, Katrina Paglia, also anticipates fewer enforcement actions and more settlements without significant admissions of guilt in the times to come.
ETF Momentum Drives Optimism as Token Outshines Rivals
One of the major forces behind XRP’s rise is the growing anticipation of XRP Exchange-Traded Funds (ETFs). While U.S.-based companies like Bitwise and Canary Capital await SEC approval for spot XRP ETFs, Europe has already led the way.
On Thursday, asset manager WisdomTree launched a physical XRP ETP (XRPW) in Europe. This product, according to the issuer, might be Europe’s lowest-cost XRP ETP.
For now, Ripple’s case with the SEC has stalled the approval of similar ETFs in the US. However, analysts believe that that approval, if it eventually comes, may just be what XRP needs to push beyond the $2 mark.
Be that as it may, XRP’s recent performance has been nothing short of remarkable. So far in 2024, it has seen a 138% increase in its value, outperforming Ethereum and even standing toe to toe with Bitcoin. After languishing in the $0.5 and $0.6 range for so long, the token is now clearly on its way up.
next