XRP Price Hits $1.40: Market Cap Surges Past $77B Following SEC Leadership News

TLDR

• EC Chairman Gary Gensler announces departure for January 20, causing XRP to surge 25%
• XRP has gained 138% in 2024, outperforming Ethereum
• New leadership could lead to fewer SEC crypto lawsuits and potential settlements
• WisdomTree launches physical XRP ETP in Europe
• XRP futures trading reaches record levels with over $2 billion in open interest

The cryptocurrency XRP experienced a dramatic price increase of 25% on Friday, pushing past $1.40 as investors responded to news of SEC Chairman Gary Gensler’s upcoming departure from the regulatory agency.

Gensler, who has maintained an aggressive stance toward crypto regulation, announced he will conclude his term on January 20.

The price movement continues XRP’s strong performance in 2024, with the digital asset posting gains of 138% year-to-date.

This growth has notably surpassed Ethereum’s returns and is approaching Bitcoin’s yearly gains, according to data from CoinGecko.

Trading activity for XRP has reached unprecedented levels, with futures markets showing over 2 billion tokens in open interest positions, equivalent to more than $2 billion at current prices. South Korean exchanges reported higher trading volumes for XRP compared to traditional market leader Bitcoin, indicating intense market interest.

XRP Price on CoinGecko

The sixth-largest cryptocurrency by market capitalization had previously experienced a period of price stagnation, with values remaining between $0.50 and $0.60 throughout much of the previous year’s market recovery. However, the token broke through the $1 threshold last week for the first time in three years.

Industry experts are suggesting the leadership change at the SEC could result in a shift in the agency’s approach to cryptocurrency regulation. Consensys CEO Joe Lubin expressed optimism about the future legal environment for digital assets, particularly under a Trump presidency.

Pantera’s legal chief Katrina Paglia predicts a reduction in SEC enforcement actions against crypto companies following Gensler’s departure. She suggests that existing cases may be dismissed or settled without major admissions of wrongdoing.

The possibility of a settlement between Ripple and the SEC has gained traction, with analysts suggesting new leadership might prefer reaching an agreement rather than continuing lengthy litigation processes. While financial penalties might still be involved, such an outcome could allow Ripple to operate without the burden of ongoing legal challenges.

In a related development, WisdomTree announced the launch of a physical XRP ETP in Europe. The product, known as WisdomTree Physical XRP ETP (XRPW), aims to provide investors with exposure to XRP’s spot price and claims to be the lowest-cost XRP ETP available in European markets.

‘@GaryGensler leaving the @SECGov is the best thing that could happen to @Ripple. Now, $XRP targets $2! https://t.co/YEDiZtrnB1 pic.twitter.com/LLE4n0MC8z

— Ali (@ali_charts) November 21, 2024

The launch of the European ETP has sparked discussions about potential similar products in the U.S. market. Both Bitwise and Canary Capital have submitted applications for spot XRP ETFs, though these proposals remain on hold due to ongoing regulatory uncertainties.

Crypto analyst Ali Martinez views Gensler’s departure as highly positive for Ripple, suggesting XRP could target the $2 price level. The token’s recent performance has caught the attention of traders and investors who had previously watched it underperform during the broader crypto market recovery.

South Korean markets have shown particular enthusiasm for XRP, with trading volumes surpassing those of Bitcoin on several exchanges. This surge in activity suggests growing international interest in the asset.

The market cap of XRP has grown substantially, reflecting increased investor confidence in the token’s future prospects. Current valuations place the total market value at approximately $77 billion.

Trading data indicates that dollar-denominated open interest in XRP futures has reached record levels, suggesting traders are positioning themselves for continued market volatility.