Cryptocurrencies targeted by the U.S. Securities and Exchange Commission (SEC) are rallying on the news that Chairman Gary Gensler plans to step down on January 20, coinciding with Donald Trump’s return to the White House.
XRP and Other SEC-Targeted Tokens Lead the Surge
Ripple’s XRP token, often at the center of SEC scrutiny, surged over 28% on Friday morning, breaking the $1 mark for the first time in three years earlier this week. XRP reached a high of $1.49 before stabilizing. This rally follows Ripple’s recent legal victory when a Texas court dismissed the SEC’s bid to expand securities regulations to crypto companies.
Other cryptocurrencies in the SEC’s crosshairs also saw gains. Cardano’s ADA jumped over 13%, while Solana (SOL) posted a modest 2% rise. These tokens have previously been named in SEC lawsuits and are now benefiting from a shifting regulatory landscape.
Crypto Renaissance Under President Donald Trump
With Trump’s inauguration approaching, the crypto market is anticipating a policy shift that could fuel innovation and growth. During his campaign, Trump promised to overhaul crypto regulations, making the U.S. a global hub for digital assets. He specifically pledged to fire Gensler and take a more crypto-friendly approach.
This promise has sparked optimism across the industry, with bitcoin climbing over 47% since Trump’s November 5 election win. Altcoins like XRP, ADA, and SOL have outperformed bitcoin in that period, signaling widespread confidence in the coming changes.
End of an Era for Gensler’s SEC
Under Gensler’s leadership, the SEC took a hardline stance on cryptocurrencies, labeling many as unregistered securities and pursuing aggressive enforcement actions. Critics argued this approach stifled innovation and drove businesses out of the U.S.
“He had been actively trying to curb the spread of cryptocurrencies throughout the financial industry,” noted Alex Kuptsikevich, FxPro’s chief market analyst. “Now, traders are betting on a U-turn in crypto policy, not just a more dovish regulation.”
As the industry braces for a “crypto renaissance,” the departure of Gensler marks a turning point for digital assets. With bitcoin eyeing a historic six-figure price and altcoins rallying, the stage is set for a transformative period under the Trump administration.