KEY POINTS
- Robinhood's re-listing of $XRP also affected the token's price in the past two days
- Many crypto users are ecstatic over speculation that Gensler may step down
- Ripple has been battling against the SEC's late 2020 lawsuit that drove $XRP's value down
The price of XRP, the native cryptocurrency of the decentralized blockchain XRP Ledger, is surging after the altcoin was made available for trading by fintech leader Robinhood.
This uptick is being further fueled by growing speculation regarding the potential resignation of U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler in the near future.
XRP has increased more than 11% in the past 24 hours and has surged more than 40% in the last seven days, early Friday data from CoinGecko showed.
Robinhood Lists $XRP
Robinhood announced the listing Wednesday, along with its addition of memecoin PEPE and other altcoins Solana (SOL) and Cardano (ADA).
The cryptocurrency community celebrated the development, saying the addition of XRP on Robinhood will "bring more retail into the token."
Retail investors are recognized as the drivers of activity in the crypto space, especially since the market has yet to see wider institutional adoption.
XRP was delisted from multiple exchanges, Robinhood included, after the SEC filed a lawsuit against Ripple in 2020. Ripple is the world's largest holder of the XRP token and has been fighting the SEC case.
While the Robinhood re-listing affected XRP prices, a bigger story may also be affecting the token's surge: Gensler's potential resignation.
Crypto Buzzes Amid Gensler's Statements
The SEC chief, who has been on the receiving end of criticism from the crypto industry and lawmakers in recent months due to the financial regulator's enforcement approach toward digital assets, released a statement Thursday, hinting that he may step down soon.
"I've been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance," Gensler concluded his lengthy reflection on his tenure as the SEC's top leader.
He also hailed the SEC staff, saying "it's been an honor to serve with them, doing the people's work, and ensuring that our capital markets remain the best in the world."
His remarks sparked speculation in the crypto community, with some concluding that his remarks were his "resignation letter," while others believe his official resignation will come "very soon."
John Reed Stark, the former chief of the SEC's Office of Internet Enforcement, previously called on Gensler to step down. "The SEC staff should prepare a spreadsheet of all crypto-related investigations, litigation and rule-making, so the new Chair can swiftly grind them all to a screeching halt," he added.
SEC Chair Gensler should resign. The SEC staff should prepare a spreadsheet of all crypto-related investigations, litigation and rule-making, so the new Chair can swiftly grind them all to a screeching halt. Like it or not, the people have spoken and their will must be respected. pic.twitter.com/2PzDsETJHk
— John Reed Stark (@JohnReedStark) November 13, 2024
$XRP's Bitter History with the SEC
Donald Trump was on his way out of the White House when the SEC filed the lawsuit against Ripple, accusing the company of violating securities laws. Upon stepping into power, Gensler's SEC picked up the case, stepping up its allegations and insisting that XRP is a security.
By 2023, a court ruled that the crypto asset isn't a security when offered on crypto exchanges. Ripple was fined $125 million – a staggering discount from the SEC's demand of $2 billion in fines.
However, the SEC filed to appeal some provisions of the said court ruling – a move Ripple immediately responded to, filing a cross-appeal as it vowed to continue fighting the regulator's continuing offensive.
Ripple CEO Brad Garlinghouse recently said he was hopeful that the new administration under Trump will provide a path for XRP to climb back to the higher ranks of the crypto realm. He also thanked XRP holders for their unwavering faith in the token, even if it has fallen from its 2018 Top 2 spot of the world's largest digital assets to currently Top 7.
