Ripple’s native cryptocurrency, XRP, soared to $3 on Wednesday, January 15, 2025, marking its highest price since 2018. The 16% surge during U.S. trading hours has been attributed to a combination of a broader crypto market recovery and speculation surrounding potential regulatory changes under the incoming Trump administration.
XRP’s price spike pushed its market capitalization to $171.5 billion, reinforcing its position as the third-largest cryptocurrency. It trails behind Bitcoin (BTC) at a staggering $1.9 trillion and Ethereum (ETH), valued at $402 billion.
The rally follows a week of correction in the cryptocurrency market, signaling renewed investor confidence. XRP’s performance also stands out amidst optimism over potential shifts in the regulatory landscape for digital assets in the U.S.
Reports suggest that Donald Trump’s incoming administration might direct the U.S. Securities and Exchange Commission (SEC) to reassess certain lawsuits against cryptocurrency businesses. Speculation centers on the possibility of easing litigation that does not involve fraud, such as cases against Ripple and Coinbase, which have been accused of selling unregistered securities.
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Trump’s reported intention to nominate Paul Atkins as SEC chair has further fueled the market’s excitement. Atkins is considered crypto-friendly and may influence the regulator to adopt a less combative stance toward the digital asset space. If confirmed, his leadership could result in a pause or reconsideration of ongoing legal battles.
However, it’s worth noting that halting cases initiated by previous SEC leadership is highly unconventional. With Atkins’s appointment still pending Senate approval, the market’s enthusiasm is based on speculation rather than concrete policy changes.
Ripple’s ongoing legal battle with the SEC has been a significant overhang for the cryptocurrency. The SEC accuses Ripple of selling unregistered securities through XRP, a claim Ripple vehemently denies. A shift in the SEC’s approach could provide relief not just for Ripple but for the broader crypto industry, which has long grappled with regulatory uncertainty.
While XRP’s rally has generated excitement, the crypto market remains volatile and sensitive to regulatory developments. Investors should approach this surge with caution, given the lack of clarity on how the incoming administration will handle crypto-related litigation.
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