Thomas Daniels
For the first time since 2018, Ripple’s native cryptocurrency, XRP, jumped above $3 during U.S. trading hours on Wednesday, January 15. This momentous occasion came as rumors circulated that the Securities and Exchange Commission (SEC) leadership under the upcoming Trump administration may reexamine several cases involving cryptocurrency.
With an astounding 16% gain, XRP’s market value reached $171.5 billion. This rise solidified Ripple’s standing as the third-largest cryptocurrency, after Ethereum (ETH) at $402 billion and Bitcoin (BTC) at $1.9 trillion.
Reasons for the Price Increase of XRP
After a brief drop earlier this week, the larger cryptocurrency market has started rebounding. However, there seems to be a strong correlation between XRP’s dramatic increase and conjecture about possible regulatory changes. According to reports, the new government of Donald Trump may take a more forgiving stance when it comes to lawsuits involving digital assets.
Lawsuits against firms like Coinbase and Ripple may be reexamined in light of the rumored appointment of Paul Atkins, a Trump contender, as SEC chair. Rather than committing fraud, both companies are accused of selling unregistered securities.
This policy change might be a turning point for Ripple and other blockchain companies if it is put into effect. There is still a lot of doubt over the outcome, though, as the SEC’s action is still unprecedented and Atkins’s appointment is still pending Senate approval.
Implications for the Market
The recent price movement of XRP demonstrates how regulatory news can have a significant impact on cryptocurrency markets. Investor confidence may be increased by a more benevolent regulatory environment, particularly for projects that are under investigation. On the other hand, legislative uncertainty and unresolved lawsuit concerns may restrain positive momentum.
