In an unexpected turn of events, Gary Gensler, the U.S. SEC Chair, has confirmed his resignation effective January 20, 2025. This announcement comes alongside another significant revelation – the return of Donald Trump as the 47th U.S. president. The impending shakeup in administration, along with Gensler’s early exit ahead of Trump’s planned firing on his inauguration day, created ripples within the cryptocurrency market, particularly for XRP, which experienced a substantial price surge, breaking past the $1.40 barrier shortly after the news broke.
Gensler, during his tenure, had been known for his stringent enforcement actions against cryptocurrencies, which had led to numerous lawsuits. Notably, while he did not initiate the Ripple case, he was at the helm of the SEC during the nearly four-year-long lawsuit. Despite a federal court’s final judgment in the lawsuit, Gensler-led SEC appealed the ruling, indicating a potentially prolonged resolution.
In light of Gensler’s imminent departure, the XRP community is hopeful for a more favorable regulatory climate under the new SEC leadership, which could bring about a swift conclusion to the prolonged Ripple lawsuit. This anticipation sparked an impressive rally in XRP’s price, which skyrocketed past $1.4, representing a daily increase of 27% and a 30-day growth of 162%. The last time XRP traded above $1.40 was during the 2021 bull market, but the ongoing Ripple lawsuit has kept its price suppressed.
In addition to the price surge, XRP also witnessed several other positive metrics. Open interest saw a 31.72% increase to a record $2.42 billion, as per Coinglass data. Large wallets holding more than 1 million XRP accumulated 453.3 million coins in a week, while those with less than 1 million XRP sold 75.7 million coins during the same period. XRP also experienced a notable uptick in trading volume on South Korean exchanges, even outpacing Bitcoin.
Following Gensler’s resignation announcement, XRP’s market cap rose by $14 billion, bringing its current market cap to nearly $80 billion, with the coin trading at $1.41. The recent developments attest to the significant influence government regulations and shifts in administration can have on the cryptocurrency market. As the SEC transitions to new leadership, the market will undoubtedly keep a keen eye on the potential changes in regulatory stance towards cryptocurrencies, particularly for XRP, given its ongoing legal battle.
