Ripple's XRP Token Surges 25% to Above $1.4 as SEC Chair Gary Gensler Announces His Exit

Ripple's XRP token rose by 25% on Friday to above $1.4, maintaining its upward trajectory after SEC Chair Gary Gensler announced his term will officially conclude on January 20.

Ripple’s XRP token enjoyed a 25% surge on Friday, surpassing the $1.4 mark and continuing its ascent following the announcement of SEC Chair Gary Gensler’s term officially concluding on January 20.

This development could lead the agency to reconsider its approach to ongoing litigation, potentially deciding against pursuing an appeal in the SEC vs. Ripple lawsuit.

Consensys CEO Joe Lubin expressed optimism regarding the legal environment for digital assets under Trump's presidency. He suggested that ongoing SEC cases against crypto companies may be “dismissed or settled.”

Pantera's legal boss Katrina Paglia also anticipates fewer actions and possible dismissals post-Gensler. Many SEC lawsuits against crypto companies are expected to decrease or settle without major admissions of guilt post-Gensler.

With new leadership at the SEC, an agreement with Ripple to settle its prolonged litigation seems more likely. While financial penalties could be part of a settlement, Ripple would be able to continue its operations without the burden of ongoing litigation.

XRP has soared 138% this year, outpacing both Ethereum and coming close to Bitcoin's year-to-date gains, according to data from CoinGecko.

The sixth-largest cryptocurrency by market capitalization has experienced a period of stagnation since last year’s market recovery, with prices largely hovering between $0.5 and $0.6, while most of the crypto market enjoyed gains.

Just last week, XRP finally crossed the $1 threshold, reaching its highest price in three years amid speculation about Gensler's potential resignation and rumors of a meeting between Trump and Ripple's CEO. The former has now been confirmed.

XRP now eyes the $2 level, according to crypto analyst Ali Martinez. He believes Gensler’s departure from the SEC is “the best thing that could happen to Ripple.”

‘@GaryGensler leaving the @SECGov is the best thing that could happen to @Ripple. Now, $XRP targets $2! https://t.co/YEDiZtrnB1 pic.twitter.com/LLE4n0MC8z

— Ali (@ali_charts) November 21, 2024

Prospective XRP ETFs

The potential approval of a spot XRP ETF in the US could act as a bullish driver for XRP’s price.

Currently, Bitwise and Canary Capital are pursuing SEC approval for their respective spot XRP ETFs. These proposed ETFs are currently on hold due to ongoing legal disputes over XRP’s status as a security.