XRP jumps 25% as SEC may not appeal after Gensler leaves

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Ripple’s XRP token rose 25% on Friday to over $1.4, maintaining its upward trajectory after SEC Chairman Gary Gensler announced his term would officially end on January 20. Gensler’s departure could prompt the agency to reevaluate its approach to ongoing litigation, which could lead to a decision not to pursue its appeal in the SEC v. Ripple lawsuit.

Consensys CEO Joe Lubin expects a favorable legal environment for digital assets under Trump’s presidency. He suggests that the SEC’s ongoing cases against crypto companies could be “dismissed or settled.”

Pantera’s chief legal officer, Katrina Paglia, expects fewer actions and potential layoffs following Gensler’s departure. Many SEC lawsuits against crypto companies are expected to diminish or settle without major admissions of guilt after Gensler.

New leadership could lead the SEC to reach an agreement with Ripple rather than continuing its lengthy litigation process. Although financial penalties may be involved in a settlement, Ripple would be able to continue operations without the burden of ongoing litigation.

According to data from CoinGecko, XRP has soared 138% this year, eclipsing Ethereum’s performance and matching Bitcoin’s year-to-date gains.

The sixth-largest cryptocurrency by market capitalization has seen a period of stagnation since last year’s market rally, with prices hovering between $0.5 and $0.6 while most of the market crypto is on the rise.

Last week, XRP surpassed the $1 threshold, hitting 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 first is now confirmed.

XRP is now eyeing 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 leave the @SECGov is the best thing that could happen @Ripple. NOW, $XRP aim for $2! pic.twitter.com/LLE4n0MC8z

– Ali (@ali_charts) November 21, 2024

Potential XRP ETFs

The potential approval of a spot XRP ETF in the United States could act as a bullish driver for the price of XRP.

Bitwise and Canary Capital are seeking SEC approval for their respective spot XRP ETFs. These proposed ETFs are currently suspended due to ongoing legal disputes regarding the status of XRP as a security.

On Thursday, asset manager WisdomTree announced the launch of a physical XRP ETP in Europe.

The fund, also known as WisdomTree Physical XRP ETP (XRPW), aims to provide investors with exposure to the spot price of XRP.

WisdomTree claims that this product is the cheapest XRP ETP available in Europe and is fully backed by the underlying asset, stored safely in cold storage.

With this launch in Europe, many in the crypto community are optimistic that similar XRP ETF products will soon debut in the United States.

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