XRP Surges 20% Amid Gensler's Resignation and Trump's Presidential Win, Sparking Optimism for Crypto-Friendly Regulation

As SEC Chair Gary Gensler prepares to leave his position, XRP is making headlines with a notable price surge. This cryptocurrency, often associated with Ripple Labs, saw its value jump significantly after Gensler announced his resignation, coinciding with President-elect Donald Trump taking office in January.

Currently, XRP's price has increased by 20% in just one day, reaching $1.49. This is the highest it’s been since May 2021. Since its launch in 2013, XRP has been one of the largest cryptocurrencies by market cap. However, it faced legal challenges when the SEC claimed it is a security in a lawsuit that started in 2020. A federal judge ruled that XRP is “not necessarily a security on its face,” but uncertainty still looms as the SEC has appealed that decision.

Juan Leon, a Senior Investment Strategist at Bitwise, shared his insights with Decrypt. He believes that XRP’s recent price jump stems from hopes for a more favorable regulatory environment under Trump. A change in leadership could open new doors, especially if the SEC decides to drop its four-year lawsuit.

“Ripple Labs and XRP have been stuck in legal battles with the SEC since 2020, which has really hurt their business prospects,” Leon explained. “Now, with Gensler leaving and XRP's stablecoin launching, investors see a clearer path for XRP to fulfill its role as a B2B blockchain payments network.”

On Election Day, XRP was priced around $0.50. Since Trump’s victory, its price has nearly tripled, making it one of the biggest gainers in the crypto market post-election.

Ripple CEO Brad Garlinghouse has been in touch with Trump’s team, as reported by The New York Times. He has discussed staffing decisions for the new administration with people close to the president-elect.

With potential changes in SEC leadership, the environment may become more crypto-friendly. Recently, access to XRP for U.S. investors has broadened, especially after Robinhood listed the token for trading earlier this month.

Last month, Ripple’s Chief Legal Officer Stuart Alderoty claimed that Gensler wanted to keep “a cloud of uncertainty hanging over the industry” with the planned appeal. He argued that the SEC’s appeal would likely fail, which could clear up that uncertainty.

The SEC had sought a $2 billion penalty against Ripple for alleged violations of securities laws concerning XRP sales. However, a federal judge ordered Ripple to pay a $125 million fine instead. The judge found that sales to institutions violated securities laws, but programmatic sales available to retail investors did not.

Connor McGlaughlin, a YouTube influencer and XRP investor, believes the coin is rising as fears about its regulatory status fade. As the SEC’s lawsuit faces more challenges, he sees renewed optimism among XRP supporters.

“With the chance of a favorable resolution and a more crypto-friendly regulatory environment under a new administration, confidence in XRP is growing,” he said. “The market is waking up to this potential, driving the current excitement and price momentum.”

Meanwhile, Dogecoin is also on the rise, reaching its highest price in over a week. Speculation is swirling about Elon Musk introducing payment features on his X social media platform. Early Friday, Musk shared a screenshot of podcaster Joe Rogan’s profile, which had a dollar sign next to it, leading to buzz about a new feature.

Jim Cramer, host of “Mad Money,” stirred up Bitcoin investors on Friday with a bullish statement. During a segment on his show’s Lightning Round, he suggested that Bitcoin-buying firm MicroStrategy is a less attractive investment than Bitcoin itself. “I’ve got to tell you it’s a Bitcoin play—I prefer to actually own Bitcoin,” he stated.

Bitcoin is still trying to break the long-anticipated $100,000 per coin mark after several near misses. However, various altcoins are gaining traction, including Dogecoin. As the seventh largest cryptocurrency by market cap, Dogecoin hit $0.4126 early Friday afternoon, marking a daily gain of nearly 7%. Its current price is $0.4114, and it’s up almost 15% for the week.