XRP Crosses $1: What’s Next?

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As a researcher with a background in finance and a keen interest in the cryptocurrency market, I must admit that XRP‘s journey to surpassing the $1 mark has been nothing short of thrilling. I remember vividly the uncertainty surrounding XRP following the 2016 U.S. presidential election, when Bitcoin was swiftly reaching new highs while XRP struggled to maintain its footing.

The path for XRP to exceed $1 has been anything but smooth. Kicking off its current bull run gradually, XRP has found it challenging to hold above $0.57 since Donald Trump’s victory in the U.S. presidential election about two weeks ago. While Bitcoin quickly set new record highs following the election, XRP experienced doubt, leading some investors to worry that it might miss out on the broader market rally.

Despite facing challenges, XRP showed tenacity this week as it surpassed the $0.60 barrier on Monday. This surge in momentum led to successive increases, enabling the cryptocurrency to regain significant psychological benchmarks at $0.70, $0.80, and $0.90 on November 14 and 15. The defining moment occurred on November 16, as XRP experienced a substantial rise of 14.72%, ultimately breaking through the $1 mark to reach $1.19.

This significant advancement marks a crucial step for XRP, setting it on a path towards reapproaching its peak value of $3.31. The recent surge has elevated XRP’s market value to approximately $59 billion, almost reaching the $60 billion mark, and has surpassed Dogecoin (DOGE) in terms of market capitalization, placing it as the sixth-largest cryptocurrency by this measure.

The recent increase in XRP can be attributed to positive legal developments concerning Ripple Labs Inc. In a noteworthy court ruling, Judge Phyllis Hamilton favored Ripple Labs and its CEO, Brad Garlinghouse, in the ongoing lawsuit with the Securities and Exchange Commission (SEC). The judge granted a mutual motion to proceed with a final verdict while temporarily halting class actions filed by the plaintiffs. This decision is considered a significant stride, suggesting that the SEC’s challenge against XRP’s classification may soon be over.

Initially, the Securities and Exchange Commission (SEC) claimed that Ripple’s sale of XRP was an unregistered securities offering, bringing in $1.3 billion. However, the court’s decision to move forward with a final judgment on the case, while delaying class action claims, has sparked hope among XRP owners. Legal professionals like Ripple’s CTO David Schwartz think that the lawsuit might be dismissed, although there is still a chance for a settlement.

Is Gary Gensler On the Way Out?

Beyond that, the overall regulatory climate is leaning more favorably towards XRP. The speculation about the possible removal of SEC Chair Gary Gensler, as well as the drive for clearer cryptocurrency regulations under the current administration, are providing additional momentum for XRP. Furthermore, Republican lawmakers challenging the SEC and former President Trump’s emphasis on promoting crypto innovation have strengthened optimism towards XRP and the wider cryptocurrency sector.

Gary Gensler, source: Wikipedia

Can Trump Really ‘Fire’ Gary Gensler?

The President of the U.S. can legally dismiss the Chair of the Securities and Exchange Commission (SEC), but this power is usually exercised when there are issues such as incompetence, negligence, or misconduct, since the SEC operates as an independent regulatory body. However, if President-elect Trump were to fire Gary Gensler on his first day, it would go against almost 90 years of legal tradition.

The President can only appoint the head of the SEC after it’s been confirmed by the Senate, but their removal needs to follow established legal guidelines to maintain the agency’s autonomy and prevent potential lawsuits based on independence issues. Precedents like the Humphrey’s Executor v. United States (1935) case have supported restrictions on removing officials from independent agencies without cause. While it’s technically possible, dismissing the SEC Chair for political motives might lead to both legal and political repercussions. However, given that President Trump has also won control of the US Senate and the House of Representatives, it’s unlikely that such a move would result in significant consequences, as many people might view this as a reasonable dismissal.

Lately, strategic moves like the announcement from Ripple Labs to launch a European stablecoin on the XRP Ledger by 2025 have boosted XRP’s development. This move is expected to enhance cross-border payment efficiency and expand XRP’s network of partners. Additionally, growing institutional interest and favorable regulatory decisions are providing XRP with continued positive momentum.

 

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2024-11-18 15:26