XRP price has surged 20% in the past 24 hours amid speculation that SEC Chairman Gary Gensler may resign.
Securities and Exchange Commission (SEC) Chairman Gary Gensler’s recent speech has sparked a wave of rumors about his possible resignation from the federal agency. This speech, given in New York City, has been interpreted as a farewell, which has generated renewed optimism among cryptocurrency investors.
Amid these rumors, the price of the XRP cryptocurrency, issued by Ripple, has seen a significant rise, reaching a 20% increase according to data from the CoinMarketCap platform.
At the time of writing, the price of XRP is hovering around $0,832.
Gensler resignation rumors impact XRP
In this recent speech, Gensler addressed, among other things, the current state of cryptocurrencies and the numerous enforcement actions taken by the SEC towards several of the industry's projects. He emphasized the need for regulation in the crypto sector to keep investors safe and reflected on his tenure at the SEC. The latter has led many to speculate about his possible resignation from the agency.
Gensler’s musings have created a climate of optimism in the crypto industry, causing a significant increase in interest in XRP, as investors consider that a change in the SEC chairmanship and, possibly, in its regulatory stance towards crypto assets, could favor Ripple in its legal battle against the regulatory body.
Source: CoinMarketCap
Since the SEC sued Ripple in December 2020, accusing the company of selling unregistered securities with the offering of XRP, the cryptocurrency’s price has been under pressure. However, following a series of favorable court decisions for Ripple, including a ruling that determined that XRP is not a security, prices have started to recover. Now, Gensler’s potential resignation could mean a radical change in the agency’s regulatory stance towards cryptocurrencies. This could open the door to a more favorable ruling for Ripple, which seems to be boosting its price in the market.
The context of the legal battle between Ripple and the SEC
Currently, the lawsuit filed by the SEC against Ripple has been one of the most controversial and debated topics within the crypto ecosystem.
Since the start of the case, Ripple has argued that XRP should not be classified as a security under US law. In July 2023, a court ruling in Ripple's favour determined that XRP is not a security, leading to a temporary rally in the cryptocurrency's price. However, this optimism was dampened by lingering regulatory uncertainty and subsequent appeals by the SEC in the case.
Given this situation, Gensler’s potential resignation could be interpreted as a positive sign for Ripple and its users. If there is a shift in the SEC administration towards a more crypto-friendly stance, this could facilitate a resolution of the case and allow Ripple to continue its operations without the current restrictions. Moreover, such an outcome would be crucial not only for the price of XRP, but also for the future of the crypto market in general.
Reflections on Gensler's management of the crypto sector
During his time at the helm of the SEC, Gary Gensler has been a polarizing figure within the crypto ecosystem. His aggressive approach to regulatory actions against cryptocurrencies has been criticized by some as excessive, while others see it as necessary to protect investors. In his recent remarks, Gensler highlighted the achievements made during his tenure, including the approval of futures-based ETFs and, later, spot ETFs for Bitcoin and Ethereum.
The approval of these latest cryptocurrency exchange-traded funds this year is seen as a major milestone for the crypto market, as they have facilitated greater institutional investment and attracted fresh capital to the sector. However, many investors have questioned whether these actions have been sufficient by Gensler to regulate cryptocurrencies.
Finally, Gensler also mentioned the challenges faced by cryptocurrencies and how his administration has sought to address these issues through legal action.
The near future for XRP and cryptocurrencies
As rumors of Gensler’s possible resignation from the SEC intensify, and significant political changes occur amid Donald Trump’s re-election as US President, the immediate future for XRP seems to be full of possibilities. The crypto community is eagerly awaiting how these potential changes could influence Ripple and other cryptocurrencies as well.
Analysts have suggested that if Gensler leaves his post before or after the presidential change expected in January 2025, this could result in a significant shakeup within the SEC. New leadership could take a more favorable stance toward cryptocurrencies and facilitate deals with companies like Ripple, which have been hurt by the agency’s aggressive enforcement policies under Gensler’s leadership.
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