XRP Flips USDT to Claim Spot as Third-Biggest Crypto by Market Cap

Ripple-promoted token XRP has flipped Tether's USDT stablecoin to claim its spot as the third-biggest crypto by market cap, trailing only Bitcoin (BTC)

Pro-crypto Securities and Exchange Commission (SEC) commissioners are set to overhaul the agency’s crypto policies as soon as next week, as President-elect Donald Trump prepares to return to the Oval Office, according to multiple reports.

The move comes amid reports that the SEC could drop some non-fraud crypto cases currently pending in courts.

Meanwhile, XRP has flipped Tether’s (USDT) stablecoin to claim its spot as the third-biggest crypto by market cap, trailing only Bitcoin (BTC) and Ethereum (ETH).

XRP Surges to Top Three, Nearing $3 Level

The XRP price nearly touched the elusive $3 mark on Wednesday morning, reaching a level not seen since 2018. XRP is trading at $2.97 at press time, up 12% over the last 24 hours and nearly $1 up from this time last week.

XRP/USD Chart by TradingView

The token has surged by roughly 27.6% over the last seven days, outperforming other major cryptocurrencies significantly during that time. XRP’s market capitalization jumped to $169.7 billion on Jan. 15, surpassing USDT, which has seen a decline in its market cap since Dec. 30.

The recent performance comes as XRP has been overlooked by several major crypto exchanges, including Coinbase, due to the ongoing lawsuit between Ripple and the SEC over whether XRP is an unregistered security.

However, there have been increasing expectations of pro-crypto policies under the forthcoming Trump government, along with rising optimism about the approval of U.S.-listed spot XRP ETFs, which could collectively attract up to $8 billion in fresh capital, according to analysts.

There are also increasing strategic partnerships and new product launches from Ripple, including the recent rollout of Ripple’s RLUSD stablecoin, which could be boosting XRP’s market presence and performance.

SEC to Drop Non-Fraud Crypto Cases, Launch Token Classification Rulemaking

A recent report from Reuters citing people familiar with the matter revealed that the U.S. Securities and Exchange Commission commissioners Hester Pierce and Mark Uyeda will start reforms next week following the departure of current chairman Gary Gensler.

The commissioners will focus on creating clear rules that will help to make it easier to clarify whether a certain token qualifies as a security. In particular, they plan to start new rulemaking by requesting the input of the public on crypto token classification.

The sources further claimed that the SEC could be poised to pause or dismiss some non-fraud cryptocurrency enforcement cases currently pending in courts. Notably, the regulator unleashed over 80 crypto-related enforcement cases during Gensler’s reign, targeting high-profile companies such as Coinbase, Binance, and Kraken.

The policy change comes as former crypto-friendly SEC commissioner Paul Atkins is anticipated to end Gensler’s current regulation-by-enforcement approach, which has faced increasing criticism from the crypto industry and some legal experts.

Atkins, who is expected to be appointed as a Republican commissioner, previously stated that the SEC should focus on creating clear rules through the Administrative Procedure Act, rather than pursuing ad hoc enforcement actions in courts.

Gensler has maintained that most cryptocurrencies are securities, and that the agency has the authority to regulate them under existing laws, without the need for new legislation or rulemaking. However, some legal experts and industry人士 have argued that Gensler’s approach is overly broad and could stifle innovation in the digital asset sector.