Ripple’s XRP token soars 20% to $0.83 after SEC Chair Gary Gensler hints at resignation

XRP, Ripple’s native token, jumped approximately 20% to $0.83 after Gary Gensler hinted that he might step down as SEC Chairman during a speech on Thursday.

According to data from CoinGecko, XRP has surged past $0.83—its highest level since July 2023 after the crypto asset was determined as non-security when sold on exchanges under a New York court ruling.

XRP’s market value still trails behind Dogecoin, the meme token king. Dogecoin’s market cap has skyrocketed over 110% since Donald Trump’s reelection due to its association with Elon Musk, a big Trump supporter and a known Dogecoin fan.

The possibility of Gensler resigning could bring XRP back into the top six crypto assets, given that the token and its developer, Ripple Labs, have been locked in a lengthy legal dispute with the SEC under Gensler’s leadership.

As Trump gears toward his second term, crypto community members expect the president-elect to fulfil his promise—firing the current SEC chair on his first day in office.

Reports have indicated that Trump’s transition team is considering a number of pro-crypto candidates for the Commission’s leadership role, such as Dan Gallagher, the chief legal officer at Robinhood Markets and a former SEC Commissioner.

What does it mean for the SEC vs. Ripple lawsuit?

If Gensler steps down and a new chair is appointed, it could lead to the dismissal of non-fraud-related lawsuits against crypto firms, including Ripple, said Consensys CEO Joe Lubin in a recent interview with Cointelegraph.

Apart from Ripple, major crypto exchanges like Coinbase and Binance are also engaged in legal battles with the SEC. Other entities, including Consensys, have faced enforcement threats from the Commission; some have fought back.

There is speculation that under new leadership, the SEC might be more inclined to settle with Ripple rather than continue a lengthy litigation process. A settlement could involve financial penalties but would ultimately allow Ripple to continue its operations without the burden of ongoing litigation.

If SEC crypto cases are dismissed or settled under Trump’s presidency, this will likely benefit XRP, as well as many other altcoins being targeted by the SEC, such as Solana (SOL) and Cardano (ADA).