XRP soars 25% on Friday, breaking past the $1.4 mark. The surge followed the announcement that SEC Chair Gary Gensler will step down on January 20, sparking speculation that the agency might reconsider its approach to ongoing litigation, including the Ripple vs. SEC lawsuit.
SEC Shakeup and Impact on Ripple
Gensler’s impending departure has raised hopes within the crypto community that the SEC may choose to drop its appeal in the Ripple case. Legal experts, including Pantera Capital’s Katrina Paglia, anticipate fewer enforcement actions under new SEC leadership, with many cases potentially being settled or dismissed.
A settlement with the SEC could free Ripple from litigation, likely involving financial penalties but allowing the company to focus on its operations without the burden of ongoing legal disputes.
XRP Outperforms in 2024
XRP has surged 138% year-to-date, outperforming Ethereum and approaching Bitcoin’s annual gains, according to CoinGecko. The token recently broke a three-year stagnation phase, which saw prices hovering between $0.5 and $0.6.
Ripple’s token surpassed the $1 threshold last week, fueled by rumors of a meeting between Ripple CEO Brad Garlinghouse and President-elect Donald Trump, alongside speculation about Gensler’s resignation.
XRP ETF Speculation
Crypto analyst Ali Martinez suggests XRP could target the $2 level, particularly if regulatory developments align. The possibility of spot XRP ETFs being approved in the U.S. is seen as a potential price catalyst.
- ETF Developments:
- Bitwise and Canary Capital have filed for spot XRP ETFs with the SEC, although approvals are delayed due to regulatory uncertainties.
- In Europe, WisdomTree launched its Physical XRP ETP (XRPW), offering exposure to XRP’s spot price. The fund is the lowest-cost XRP ETP in Europe, fully backed by XRP stored in cold storage.
Looking Ahead
With the SEC likely adopting a less aggressive stance post-Gensler, and the potential for spot XRP ETF approvals, many analysts and investors remain bullish on XRP. The token is poised to benefit from a more favorable regulatory environment and increasing institutional adoption.
