The value of XRP, linked to Ripple Labs, has surged by 21% in the past 24 hours, reaching $2.30 and making it the fourth-largest cryptocurrency globally in terms of market cap. The surge comes after President-elect Donald Trump’s election win and speculation that the Securities and Exchange Commission (SEC) may drop its legal case against Ripple.
Since Trump’s victory, XRP’s market cap has risen from around $30 billion to $131 billion on Monday. This is a significant increase compared to last week, with XRP briefly overtopping Tether’s USDT stablecoin in value before settling slightly lower.
The surge in XRP prices is attributed to news that the New York Department of Financial Services may soon approve the launch of Ripple’s RLUSD stablecoin. This report sparked speculation about a potential regulatory environment shift under Trump and the GOP-controlled Congress, which has been supportive of cryptocurrencies.
Ripple Labs was sued by the SEC in 2020 over allegations that it sold XRP tokens without registering them as securities. However, a federal judge ruled against the SEC in July last year, stating that Ripple did not violate securities law by selling XRP on public exchanges. The SEC appealed this ruling, but Trump’s election and the announcement of SEC chair Gary Gensler stepping down in January have triggered speculation about a possible reversal.
Former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo has expressed support for dropping the case against Ripple, citing a need for regulatory clarity. This move would likely be seen as beneficial to the cryptocurrency industry and could lead to increased adoption and growth of XRP.
Source: https://www.forbes.com/sites/siladityaray/2024/12/02/ripples-xrp-is-now-the-fourth-largest-cryptocurrency-after-100-billion-post-election-surge