- Political shifts may determine XRP, Solana futures as investors bet on a Trump victory.
- XRP’s SEC appeal and leadership change could impact the outlook for crypto ETFs.
- Hester Peirce’s potential SEC role sparks bullish sentiment for XRP and Solana markets.
The cryptocurrency market is hoping for a pro-crypto candidate to hold the US presidential position that can bring regulatory clarity, toward assets like XRP, Solana, and other altcoins. Recent filings for ETFs tied to these assets appear to be speculative bets on a potential Donald Trump victory in the 2024 US Presidential race.
Investors believe this change could bring a major regulatory overhaul, especially with the possible departure of SEC Chairman Gary Gensler. This could create more favorable conditions for digital assets.
However, the outcome of the presidential race is crucial, as a Kamala Harris presidency could mean these investments become worthless if her administration keeps a more conservative stance on cryptocurrency regulations.
The ‘Trump Call’ and Its Market Impact
Bloomberg Analyst Eric Balchunas noted in an X post that in the current regulatory climate, filings related to XRP and Solana look like cheap call options, much like stock options with speculative upside. These filings are essentially wagers on a Trump win, which could lead to Gensler being replaced and open the door to more lenient cryptocurrency regulations.
Many market analysts think that a regulatory shakeup under a Trump administration could lead to the approval of numerous crypto ETFs, significantly boosting the market for altcoins.
However, if Harris wins, these filings may expire worthless, as her administration might take a more cautious approach to digital assets. This makes the US political climate a crucial factor for investors considering these speculative bets.
Read also: Trump, Harris, and the Future of U.S. Crypto Regulation: What to Expect
SEC’s Appeal Deadline and the XRP ETF Outlook
The SEC’s influence on the future of XRP is also important. The SEC has until October 7 to appeal Judge Torres’ July 2023 ruling, which declared that secondary sales of XRP through exchanges are not securities.
If the SEC appeals, the likelihood of success for XRP-related ETFs falls significantly. Investors are focused on this deadline, as the SEC’s decision will have a major impact on the crypto market. Many doubt that the SEC will let the ruling stand without further legal challenges.
Gensler’s Potential Exit and New Leadership
No matter who wins the 2024 election, Gensler’s time as SEC chairman may be ending. Harris has already said she disagrees with Gensler’s regulatory style, specifically her opposition to regulation through litigation. This suggests a potential shift in leadership.
Balchunas also notes that Hester Peirce, often referred to as “Crypto Mom,” could replace Gensler. Peirce’s pro-crypto stance could lead to a new era of regulatory clarity and innovation for digital assets, driving significant growth for XRP, Solana, and other altcoins.
Read also: Senator Lummis: Gensler Could Step Down If Trump Wins 2024
Therefore, her appointment as SEC chair could create very bullish conditions for cryptocurrencies, encouraging investors to make long-term bets on these assets.
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Source: https://coinedition.com/xrp-solana-etfs-us-elections-fuel-speculative-donald-call/