XRP Token Surpasses $1.4 Mark Following SEC Leadership Change
Ripple’s XRP token crossed the $1.4 mark for the first time in three years, rising by 25% on Friday, influenced by developments related to the US Securities and Exchange Commission (SEC).
SEC Chair Gary Gensler announced his term will end on January 20, leading to speculation that his departure may alter the regulatory body’s stance on crypto litigation. Market analysts suggest a resolution in the ongoing SEC vs. Ripple lawsuit is more likely.
New SEC Leadership, New Opportunities for Ripple and XRP
Under Gensler's leadership, the SEC was viewed as hostile towards the crypto industry due to its strict regulatory approach, resulting in numerous lawsuits against firms like Ripple. His exit could create a more favorable legal environment for digital assets, prompting the SEC to reconsider pursuing an appeal in Ripple’s case, potentially opting for a settlement instead.
Consensys CEO Joe Lubin anticipates that ongoing SEC cases against crypto companies may be “dismissed or settled,” particularly given the timing with a potential Trump presidency. Similarly, Pantera’s legal head, Katrina Paglia, expects fewer enforcement actions and more settlements without significant admissions of guilt in the future.
ETF Momentum Drives Optimism as Token Outshines Rivals
XRP’s rise is also fueled by increasing anticipation for XRP Exchange-Traded Funds (ETFs). U.S.-based firms like Bitwise and Canary Capital await SEC approval for spot XRP ETFs, while Europe has already made progress.
On Thursday, asset manager WisdomTree launched a physical XRP ETP (XRPW) in Europe, touted as possibly the region’s lowest-cost XRP ETP.
Ripple’s ongoing case with the SEC has currently delayed similar ETF approvals in the U.S., but analysts believe that such approval could propel XRP beyond the $2 mark. Year-to-date, XRP has increased by 138%, outperforming Ethereum and closely competing with Bitcoin, after previously trading in the $0.5 to $0.6 range.