XRP Surges 20% as SEC Chair Gary Gensler Prepares to Exit

The price of XRP, Ripple Labs‘ prominent cryptocurrency, soared 20% Thursday following news that SEC Chair Gary Gensler will step down when President-elect Donald Trump takes office in January.

The cryptocurrency hit a high of $1.53 today, marking its highest price since May 2021. XRP has nearly tripled in value since Election Day, making it one of the top-performing crypto assets in the post-election rally.

XRP’s Legal Saga and Market Impact

Since 2020, XRP has been mired in legal battles with the Securities and Exchange Commission (SEC), which alleged the token was an unregistered security. While a federal judge ruled earlier this year that XRP is “not necessarily a security on its face,” the SEC’s ongoing appeal has kept regulatory uncertainty alive.

The recent surge in XRP’s price reflects investor optimism that Gensler’s departure will usher in a more crypto-friendly regulatory environment.

Ripple’s Strategic Position

Bitwise Senior Investment Strategist Juan Leon attributed XRP’s price jump to renewed hope for regulatory clarity:

“Ripple Labs, and XRP by extension, has been mired in lawsuits with the SEC since 2020, which has severely held back their business prospects. Now, with Gensler on his way out, investors are embracing a clear roadmap for XRP to fulfill its mission as a B2B blockchain payments network.”

Ripple’s influence has also grown in the U.S. market, with investment app Robinhood recently adding XRP to its platform for trading.

Ripple CEO Brad Garlinghouse has reportedly offered staffing advice to Trump’s team, signaling a possible strategic alignment with the incoming administration.

Renewed Optimism Among XRP Investors

YouTube influencer and XRP supporter Connor McGlaughlin, host of Mickle Markets, highlighted growing confidence in XRP’s future:

“With the likelihood of a favorable resolution and the potential for a more crypto-friendly regulatory environment under a new administration, confidence in XRP is growing.”

Legal Challenges and Ripple’s Resilience

While the SEC initially sought a $2 billion penalty against Ripple for alleged securities law violations, a federal judge ordered Ripple to pay a much smaller $125 million fine in August. The ruling determined that Ripple’s institutional sales violated securities laws, but its sales to retail investors did not.

Ripple’s Chief Legal Officer Stuart Alderoty previously argued that the SEC’s appeal aimed to prolong uncertainty in the industry. However, he expressed confidence that the appeal would fail, removing what he called a “cloud of uncertainty” over XRP.

The Road Ahead

With Gensler’s resignation and Trump’s pro-crypto stance, XRP supporters see a path for Ripple to advance its blockchain-based payment solutions.

As XRP rebounds from its legal challenges, it continues to draw significant attention as a symbol of the cryptocurrency industry’s resilience in the face of regulatory hurdles.