- XRP price increased 20% following news of SEC Chair Gary Gensler’s planned resignation
- Price reached $1.49, highest level since May 2021, nearly tripling from $0.50 post-election
- Ripple CEO Brad Garlinghouse advising Trump’s team on potential administration staffing
- Federal judge previously ruled XRP “not necessarily a security,” though SEC appeals continue
- Robinhood recently listed XRP for trading, expanding U.S. market access
XRP Surges as Gensler Announces SEC Departure
XRP, the cryptocurrency associated with Ripple Labs, experienced a significant price rally following SEC Chair Gary Gensler’s announcement of his upcoming resignation.
The digital asset’s price surged 20% in 24 hours, reaching $1.49 on Friday – its highest value since May 2021.
Regulatory Relief Drives Market Optimism
The price movement comes amid expectations of a more favorable regulatory environment under the incoming Trump administration.
The SEC’s 2020 lawsuit against Ripple Labs, which alleged XRP was an unregistered security, has been a significant obstacle for the company’s operations.
A federal judge previously ruled that XRP is "not necessarily a security on its face," though the SEC maintains its position through ongoing appeals.
Market Analysis and Industry Response
Bitwise Senior Investment Strategist Juan Leon told Decrypt: "Ripple Labs, and XRP by extension, has been mired in lawsuits with the SEC since 2020, which has severely held back [their associated] business prospects."
The cryptocurrency’s value has nearly tripled from its Election Day price of $0.50, marking one of the largest post-election gains in the crypto sector.
Strategic Developments
Ripple CEO Brad Garlinghouse has established connections with Trump’s inner circle, according to the Bitcoin.html”>New York Times, providing input on potential administration appointments.
Investment platform Robinhood has recently listed XRP for trading, expanding access for U.S. investors.
Legal Background
The SEC initially sought a $2 billion penalty against Ripple over XRP sales, but a federal judge reduced this to $125 million in August.
The ruling distinguished between institutional sales (found to violate securities laws) and retail investor access (deemed compliant).
Market Sentiment
Connor McGlaughlin, cryptocurrency influencer and XRP investor, attributes the price increase to diminishing regulatory concerns.
"With the likelihood of a favorable resolution and the potential for a more crypto-friendly regulatory environment under a new administration, confidence in XRP is growing," McGlaughlin stated.
The market’s response reflects growing optimism about XRP’s regulatory status and future potential as a B2B blockchain payments network.
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