With new SEC leadership on the horizon, the cryptocurrency market is anxiously awaiting possible changes in the regulatory environment.
Source: ZebPay
Important Takeaways:
- XRP jumped 20% to $0.83, following Gary Gensler’s resignation hints.
- XRP and other coins may gain from litigation dismissals brought about by the new SEC leadership.
After Gary Gensler said in a speech on Thursday that he would resign as SEC chair, Ripple’s native coin, XRP, surged around 20% to $0.83.
According to CoinGecko, XRP’s price has increased beyond $0.83. This is the highest level recorded since July 2023. A New York court opinion concluded that the cryptocurrency asset was not a security when sold on exchanges.
Source: CoinGecko
Dogecoin, the king of meme tokens, continues to have a higher market value than XRP. Dogecoin’s market capitalization has risen dramatically since Donald Trump’s reelection. Dogecoin’s affiliation with Elon Musk, a well-known Trump supporter and Dogecoin enthusiast, handles this growth.
Gensler has been at the center of the long-running legal battle between Ripple Labs and the SEC. Gensler’s resignation might push XRP back into the top six cryptocurrency assets.
Members of the crypto community hope the president-elect will keep his word as he gets ready for his second term. They specifically expect that on his first day in office, he will dismiss the present SEC chair.
According to reports, several pro-crypto individuals are being considered by Trump’s transition team for the position of Commission leader. Dan Gallagher, a former SEC Commissioner and the chief legal officer of Robinhood Markets, is one of these applicants.
What does it signify for the lawsuit of SEC v. Ripple?
A new chair might be chosen if Gensler resigns. Joe Lubin, the CEO of Consensys, told Cointelegraph in a recent interview that this might cause the dismissal of non-fraud-related cases against cryptocurrency companies, including Ripple.
Besides Ripple, significant cryptocurrency exchanges Coinbase and Binance are also involved in legal disputes with the SEC. The Commission has threatened enforcement actions against other organizations, such as Consensys; some have retaliated.
There is conjecture that the SEC may be more likely to settle with Ripple rather than pursue a drawn-out legal battle under the new leadership. Although a settlement would entail monetary fines, it would free Ripple from the weight of ongoing legal action.
If SEC crypto lawsuits are dismissed or settled under Trump’s presidency, XRP, as well as many other SEC-targeted altcoins like Solana (SOL) and Cardano (ADA), will benefit.
