At the current moment, the price of Ripple’s XRP stands at $2.40, showing a 15% increase since the beginning of the year. This surge has positioned XRP ahead of many other cryptocurrencies, including Bitcoin.
XRP is on the brink of experiencing significant price fluctuations this month due to various developments that could impact its legal standing.
Last October, the US Securities and Exchange Commission (SEC) lodged an appeal in an ongoing legal dispute spanning four years with the objective of clarifying whether XRP should be classified as a security or a commodity.
When the appeal was filed, XRP’s future looked uncertain, but the forthcoming change in leadership within the SEC has sparked hope of a favorable resolution.
How will Gensler’s Departure Affect the SEC’s Case?
The current SEC Chair, Gary Gensler, is set to resign from his role on January 20th.
Gensler declared his resignation from the regulatory agency in late November, a move that signaled a potential shift away from the SEC’s anti-cryptocurrency stance.
Former SEC Commissioner Paul Atkins has been chosen by Trump as the next Chair of the SEC, a decision that has been positively received by the crypto community.
Brad Garlinghouse, CEO of Ripple, expressed his belief that Atkins would,
“Restore rationality to the organization.”
This change in leadership could signify a pivotal moment for XRP and solidify its status as a non-security.
Impact of the “Trump Effect” on Ripple
Garlinghouse suggests that Trump’s presidential victory has already had a beneficial impact on Ripple.
In a recent post on X, formerly Twitter, he disclosed that during the final six weeks of 2024, Ripple secured more deals than it had in the previous six months, stating,
“2025 has arrived, and the Trump bull market is real. For Ripple, this is particularly significant after Gensler’s SEC effectively hindered our domestic business opportunities for years.”
In response to Garlinghouse’s statement, John Deaton highlighted that Ripple’s growth highlights the repercussions of the prior uncertainties facing U.S. businesses due to regulatory ambiguity.
Deaton emphasized that aside from grappling with regulatory instability, Ripple was also impacted by government intrusion and selective law enforcement.
Is XRP Ready for an Upward Trend?
The legal tussle between Ripple and the SEC has suppressed its price performance over the years. Yet, with Trump’s victory already showing promise for Ripple, the digital asset might witness a surge once the new SEC Chair assumes office.
Furthermore, favorable advancements in the SEC vs. Ripple case have historically had a positive influence on price movements. Therefore, if the appeal is retracted, it could pave the way for a new uptrend.