XRP Soars by 25% Amidst Potential Shifts in SEC’s Crypto Policy

XRP, the cryptocurrency closely linked to Ripple Labs, experienced a significant surge in value, rising by 25% on Friday to surpass $1.4. The increase comes amid speculations that the U.S. Securities and Exchange Commission (SEC) may alter its stance on cryptocurrency regulation following the announced resignation of SEC Chairman Gary Gensler. This development is fueling optimism for a more crypto-friendly environment in the United States.

Gary Gensler, who took office as SEC Chairman in January, is set to leave his position soon. His potential departure has raised hopes within the crypto community that ongoing litigation against companies such as Ripple might conclude or settle favorably. «I anticipate a more favorable legal environment for digital assets under the upcoming administration,» said Consensys CEO Joe Lubin, referring to the recent election of Donald Trump in 2024, who is perceived to have pro-crypto sentiments.

Katrina Paglia, a legal executive at Pantera, expressed optimism about the potential decrease in regulatory actions against crypto firms post-Gensler’s departure. She suggested that many of the SEC’s lawsuits could either be dismissed or settled without significant penalties.

Ripple Labs has been embroiled in a legal battle with the SEC since 2020, when the commission accused it of selling XRP as an unregistered security. Following a court clearing earlier this year, Ripple’s fortunes appear to be improving, with many investors hopeful for a settlement. «With new leadership, it’s possible the SEC will reach an agreement with Ripple, enabling the company to operate without the burden of ongoing litigation,» Paglia added.

XRP’s market trajectory has been favorable this year, with its value skyrocketing by 138%, significantly outperforming Ethereum and closely trailing Bitcoin. Analysts such as Ali Martinez are optimistic about XRP’s future, estimating potential highs of $2 if market conditions continue to improve. «This is the best thing that could happen to Ripple,» tweeted Martinez following Gensler’s announcement.

In a related development, the possibility of a U.S.-approved spot XRP Exchange-Traded Fund (ETF) could further bolster XRP prices. Asset managers Bitwise and Canary Capital are reportedly seeking SEC approval for their respective ETFs, which are currently on hold due to legal uncertainties surrounding XRP’s classification as a security.

Meanwhile, WisdomTree, an asset manager, has launched a physical XRP Exchange-Traded Product (ETP) in Europe. The WisdomTree Physical XRP ETP (XRPW) offers investors exposure to XRP’s spot price, and according to the company, it is the lowest-cost XRP ETP in Europe, fully backed by XRP stored in cold storage. This European launch has heightened expectations among crypto enthusiasts for similar products in the U.S. market.