XRP cryptocurrency has seen a significant surge in its price. It crossed the $0.80 mark today. The surge comes amid speculation surrounding the potential resignation of SEC Chairman Gary Gensler, which many believe could lead to a more favorable regulatory environment for cryptocurrencies.
Legal Challenge Against the SEC
On November 14, 18 states including Texas and Florida filed a lawsuit against the SEC, accusing it of unconstitutional overreach in its regulation of the crypto industry. The lawsuit, which is backed by the DeFi Education Fund, alleges that the SEC’s aggressive enforcement actions have targeted crypto companies without clear guidelines, stifling innovation and violating states’ rights to regulate their economies. The attorney general asserted that this legal challenge is aimed at curbing excessive federal regulation that is harming ordinary citizens participating in the digital marketplace.
Implications of Gensler’s Possible Resignation
Gensler hinted at his resignation during a speech at the Law Practice Institute, where he stated that he was proud to serve on the SEC. His departure could mark the end of the ongoing legal battle against Ripple, which has faced scrutiny over whether XRP should be classified as a security.
Future Developments for XRP
In addition to these regulatory changes, Ripple is preparing to launch a USD-backed stablecoin on its ledger, strengthening its ecosystem and increasing its utility for users and developers. This development is expected to drive adoption and liquidity within the XRP Ledger community.
Analysts predict that due to the above reasons, XRP could see a significant price surge, possibly reaching $1 or more as investor sentiment turns positive.
After Trump’s election as US president in 2024, investors poured significant capital into the cryptocurrency market. At the time of publishing this report, XRP was trading at $0.8543, up 18.9% in the last 24 hours.
XRP surges on Gensler’s resignation
XRP, the seventh-largest cryptocurrency by market cap, has seen a remarkable surge of nearly 15% in the past 24 hours, outperforming the overall market trend. While Bitcoin and Ethereum both suffered losses of 1.4% and 3.8% respectively, XRP briefly jumped above $0.80. This remarkable surge is due to two major events that have had a strong impact on the market:
Speculations about the resignation of Chairman of US Securities and Exchange Commission
One of the main factors supporting the rise of XRP is the ongoing talk about the possible resignation of the Chairman of the US Securities and Exchange Commission, Gary Gensler. In a recent speech, Gensler highlighted his ongoing efforts to modernize financial regulations, especially regarding cryptocurrencies. He also stressed that Bitcoin is not a security, a position that is in line with the vision of the former Chairman of the Commission, Jay Clayton. However, his comments about the need for clearer regulatory distinctions between digital assets and his expression of gratitude for his future in office have raised questions about his continuity. If he resigns, the move could help create a more supportive and flexible regulatory environment for cryptocurrencies, including XRP.
At least 18 US states have filed lawsuits against the SEC, reflecting growing opposition to its policies. With expectations of a change in administration in the event of a Trump victory, investors are anticipating a clearer and more supportive regulatory policy for cryptocurrencies.
Ripple’s RLUSD stablecoin announced
Alongside speculation about Gensler, Ripple’s announcement of the launch of its new stablecoin, RLUSD, has also helped support the price of XRP. Ripple will issue the stablecoin, pegged to the US dollar, on both the XRP Ledger and Ethereum blockchains. The stablecoin aims to boost Ripple’s presence in areas such as decentralized finance (DeFi).
Ripple Launches RLUSD to Boost Stability in Stablecoin Markets
Ripple CEO Monica Long said RLUSD aims to meet growing demand in markets such as the Asia-Pacific (APAC) region, the European Union, and Australia, where stablecoins see rising use in various financial applications. RLUSD will issue under a New York Trust license, offering a stronger regulatory framework than traditional money transfer licenses. This license will provide greater oversight of stablecoin reserves and boost confidence in their long-term sustainability, while ensuring that Ripple adheres to strict reserve standards under the New York Department of Financial Services (NYDFS).
In terms of market action, Bitcoin has fallen from $93,000 to $88,000, while Ripple (XRP-USD) has seen a notable jump of 17% over the past 24 hours, trading above 82 cents. This is its highest level since June 2023. The rise came after 18 US states filed a lawsuit against the Securities and Exchange Commission, accusing it of constitutional violations. Traders believe a more favorable regulatory environment for cryptocurrencies could benefit tokens like XRP, which Ripple Labs and other US companies back.
On the other hand, comments by Jerome Powell, the Chairman of the Federal Reserve, disappointed the markets as he indicated that “the economy is not sending any signals that indicate the need to rush to reduce interest rates.” This statement reduced the chances of a 25-basis point rate cut, which negatively affected many coins such as Ethereum, Solana (SOL-USD) and meme coins such as Dogecoin (DOGE-USD), which fell by more than 3%.
Despite these declines, optimism about Bitcoin remains. According to QCP Capital traders, reaching levels between $100,000 and $120,000 may not be far-fetched, as the market is looking to resume new highs, amid expectations of Trump’s return and the proposed Bitcoin reserve strategy.
