XRP from Ripple has seen a 15% increase year-to-date, reaching $2.40 at the current moment. This growth has surpassed many other cryptocurrencies, including Bitcoin [BTC].
XRP is on the brink of significant price shifts this month, with various developments on the horizon that could positively affect its legal standing.
Last October, the US Securities and Exchange Commission (SEC) initiated an appeal in a prolonged legal battle spanning four years to clarify whether XRP should be considered a security or a commodity.
Although the appeal initially clouded XRP’s future, the imminent change in the SEC’s leadership has sparked hope for a favorable outcome.
Implications of Gensler’s Resignation on the SEC Case
The current Chair of the SEC, Gary Gensler, is set to step down from his role on January 20th.
Gensler’s decision to leave the regulatory institution in late November was viewed as the end of the SEC’s negative stance towards cryptocurrencies.
Former SEC Commissioner Paul Atkins has been chosen by Trump as the next SEC Chair, a move met with positivity by the crypto community.
Brad Garlinghouse, Ripple’s CEO, expressed his belief that Atkins could,
“Bring rationality back to the agency.”
This alteration in leadership might signal a shift for XRP and potentially solidify its non-securities classification.
Impact of the “Trump Effect” on Ripple
Garlinghouse mentioned that Trump’s victory has already had a beneficial impact on Ripple.
In a recent post on X (formerly Twitter), he disclosed that in the last six weeks of 2024, Ripple concluded more agreements than in the preceding six months, stating,
“2025 has arrived, and the Trump-inspired bullish market is tangible. For Ripple, this is even more significant following Gensler’s SEC essentially halting our domestic business opportunities for years.”
In response to Garlinghouse’s tweet, John Deaton highlighted that Ripple’s expansion underlines the prior harm inflicted on U.S. businesses due to regulatory uncertainties.
Deaton emphasized that aside from grappling with uncertainty in regulations, Ripple fell victim to governmental overreach and selective implementation.
Prospects for XRP in terms of Growth
XRP’s legal dispute with the SEC has hindered its price performance in the past. Nevertheless, with the benefits of Trump’s victory already manifesting for Ripple, the token could experience an upsurge once the new SEC Chair takes charge.
Additionally, positive advancements in the SEC’s case against Ripple have historically indicated favorable movements in price. Therefore, should the appeal be abandoned, it might pave the way for another positive trend.