Possible Gary Gensler Exit: XRP Price Surges Past $0.80
Following speculations that Gary Gensler could exit the SEC, XRP’s price has been on an uptrend, reflecting optimism surrounding its global use case.
Amid Bitcoin’s (BTC) price surge and subsequent drop, Ripple’s native token (XRP) is among the biggest gainers in the crypto market, having breached the $0.80 level. However, XRP’s rapid price surge is attributed to the potential exit of Gary Gensler, the current US Securities and Exchange Commission (SEC) chairman.
Gensler has been a loggerhead with most digital asset entities. Donald Trump’s election as president of the United States is expected to usher in a new perspective for the crypto space.
XRP’s Price and a Possible Gary Gensler Exit
By gaining more than 19% in the past day, XRP has drawn much attention from the cryptocurrency world. The coin peaked during early trading hours at $0.84 and is currently trading at $0.81.
This rally represents a 50% weekly gain, which has not happened since June 2023. The increase occurred amid a broader decline in the cryptocurrency market, which saw the global market capitalization drop 3% to $2.9 trillion.
The 72% increase in XRP’s trading volume to $11.13 billion highlighted investors’ increased interest. While most cryptocurrencies’ prices are in a downtrend, the XRP price uptrend has stood out.
Liquidations and Whale Activity Fuel Momentum
Due to XRP’s price increase, the futures market saw significant liquidations. In 12 hours, more than $12.21 million in XRP-related holdings were liquidated, according to CoinGlass data.
Interestingly, short holdings accounted for 53% of these liquidations, indicating that many traders placed bets against XRP’s ascent. On-chain data further demonstrate the rising trust in XRP among large investors.
Whale wallets have acquired 45.61 billion XRP with at least one million tokens, the most since June 2018. This whale acquisition indicates long-term optimism over the asset’s future, as whale and shark wallets have added to their holdings in the last two years.
Gary Gensler Reiterates Crypto Stance
Furthermore, speculation over changes at the SEC has contributed to XRP’s surge. With his recent resignation hint, there are expectations of a more welcoming regulatory landscape for the cryptocurrency sector.
During his tenure, Gary Gensler— renowned for his strict enforcement style—filed numerous lawsuits against leading cryptocurrency projects and businesses. The SEC chair reiterated his view that most digital assets are securities during a lecture in New York on November 14, but he clarified that Bitcoin is not a security.
Gensler admitted that many cryptocurrencies lacked precise legal definitions. Hence, he maintained his stance about their status. His remarks coincided with growing criticism by 18 US states, including a lawsuit filed by these states alleging overreach by the SEC.
Industry participants are optimistic about regulatory reforms as President-elect Donald Trump prepares for office. Trump has previously stated that he intends to fire Gensler, which might bring a new age of crypto-friendly regulation.
Market players believe this change could address long-standing legal issues, including Ripple’s current dispute with the US regulator.
A Shift in Crypto Regulatory Landscape
Despite Gary Gensler’s assertions about the risks associated with the crypto industry, XRP’s latest rally reflects its resilience and the optimism surrounding its use case in global financial systems. The convergence of bullish factors, particularly whale accumulation and regulatory changes, has reinforced investor confidence in XRP.
In another development, Judge Phyllis Hamilton ruled in favor of Ripple Labs and CEO Brad Garlinghouse, marking a significant accomplishment in the ongoing US SEC-Ripple Labs litigation. After both parties submitted a joint application, the court granted the defendant’s request for a final judgment and authorized a stay on the plaintiff’s class action claims.
In addition, the court ruled in favor of Ripple and Garlinghouse regarding class action claims of purported unregistered securities sales and violations of California securities laws. Notably, the court has set the trial date for January 21, 2025, stressing that any subsequent pretrial sessions will be postponed.
The court noted that these dates will only be adjusted after any motions or appeals about the class action claims have been settled. This decision was made in response to Ripple’s request for a judgment and the suspension of the remaining state law claims pending the resolution of these class action claims.
Additionally, the court urged each party to look into alternate means of resolving the case.
