Key Highlights
The price of XRP skyrocketed by 25% following speculation that the SEC may reduce its enforcement activities after Chairman Gary Gensler’s exit. Pantera Capital predicts that Gensler’s departure could lead to a decrease in SEC lawsuits and potentially some staff changes.
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Ripple’s XRP token surged 25% to surpass $1.4 on Friday, maintaining its upward momentum after SEC Chairman Gary Gensler announced that his term would officially end on January 20. His exit might encourage the agency to rethink its current litigation strategies, particularly concerning the appeal in SEC v. Ripple.
Joe Rubin, CEO of ConsenSys, believes that the legal landscape for digital currencies could improve under a Trump administration. He indicated that some ongoing SEC lawsuits against cryptocurrency firms may eventually be “dropped or resolved.”
Katrina Paglia, the head of legal at Pantera, anticipates that there will be a reduction in Gensler’s activity, with possible firings in the wake of his exit. She expects many SEC lawsuits against crypto firms to decline or be settled without significant concessions.
With new leadership, the SEC might choose to negotiate a settlement with Ripple instead of prolonging litigation. While a settlement might include some financial penalties, it would allow Ripple to operate without the weight of ongoing legal disputes.
According to CoinGecko data, XRP has surged by 138% this year, significantly outperforming Ethereum and nearly catching up to Bitcoin’s yearly gains.
As the sixth-largest cryptocurrency by market cap, XRP had been stagnant post-market recovery, with its price fluctuating between $0.5 and $0.6 while the broader cryptocurrency market ramped up.
Just last week, XRP surpassed the $1 mark, reaching a three-year high amid speculation regarding Gensler’s potential resignation and rumors of discussions between Trump and Ripple’s CEO, which have since been confirmed.
Crypto analyst Ali Martinez has noted that XRP appears to be targeting the $2 level now. He believes that Gensler’s exit is “the best outcome for Ripple.”
“@GaryGensler leaving @SECGov is the best thing that could happen to @Ripple. $XRP now targeting $2! https://t.co/YEDiZtrnB1 pic.twitter.com/LLE4n0MC8z
— Ali (@ali_charts) November 21, 2024
Potential for XRP ETF
The approval of a spot XRP ETF in the United States could serve as a significant upward catalyst for the XRP price.
Both Bitwise and Canary Capital are vying for SEC endorsement of their respective spot XRP ETFs, which are currently in limbo due to ongoing legal discussions regarding XRP’s classification as a security.
Recently, WisdomTree, an asset management firm, unveiled a physical XRP ETP in Europe.
This fund, known as the WisdomTree Physical XRP ETP (XRPW), aims to give investors exposure to the spot price of XRP.
WisdomTree claims that this offering is the most cost-effective XRP ETP currently available in Europe and is fully backed by securely stored underlying assets.
With this launch in Europe, many in the crypto community are feeling optimistic that a similar XRP ETF could soon be introduced in the U.S.
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