In a significant political shift, Donald J. Trump has been re-elected as the 47th President of the United States. This development has captured the attention of the cryptocurrency industry, as many anticipate whether he will fulfill his promises to support its growth. Among these commitments are those involving SEC Chair Gary Gensler, which could substantially influence the ongoing Ripple vs. SEC lawsuit and potentially open doors for the approval of a spot XRP ETF.
Trump May Fire Gensler, Benefiting the Ripple Lawsuit
Donald Trump has strategically aimed to win the crypto vote in this election by participating in key events such as the Bitcoin conference, launching his own digital tokens, and pledging to transform the U.S. into the “crypto capital of the world.” With his victory in the 2024 presidential election, the crypto community is optimistic about a more favorable regulatory landscape.
During a major US Bitcoin Conference in late July, Trump made a bold promise to remove SEC Chair Gary Gensler on his first day back in office, a statement that was met with enthusiastic support. This move is seen as a potential game-changer for the industry.
Speculation is rife about whether Gensler will indeed be ousted by January. Under Gensler’s leadership, the SEC has pursued numerous lawsuits against cryptocurrency companies and has struggled to provide clear guidelines on which digital assets qualify as securities, often resulting in regulatory ambiguity.
The SEC’s most notable legal battle has been with Ripple, initiated nearly four years ago. The SEC accused Ripple, led by CEO Brad Garlinghouse, of conducting $1.3 billion in unregistered securities sales through its initial XRP offerings. Despite several developments, the case remains unresolved.
With Trump leading the charge, Ripple could see significant advantages if Gary Gensler is removed from his SEC position in the coming months. However, there are crucial factors to consider. First, Trump won’t assume office for a few months. Second, he must act on his promise to dismiss Gensler. Third, the identity and policies of the next SEC Chair, particularly concerning cryptocurrencies and the Ripple lawsuit, remain uncertain.
Consequently, XRP investors may need to exercise patience to see the lawsuit’s outcome and its impact on the asset’s value.
Will There Be an Approval for an XRP ETF?
Ripple CEO Brad Garlinghouse has outlined several crypto-friendly initiatives that President-elect Donald Trump should implement in his first 100 days, including resolving the Ripple vs. SEC lawsuit. He also celebrated the electoral victories of crypto-friendly candidates alongside Trump’s 2024 presidential win.
Garlinghouse proposed several potential successors to Gensler, including Christopher Giancarlo, former chairman of the Commodity Futures Trading Commission (CFTC); Brian Brooks, former Acting Comptroller of the Currency; and Dan Gallagher, a former SEC commissioner. These candidates are seen as capable of steering the SEC towards a more crypto-friendly stance.
Should Trump succeed in establishing a regulatory framework that favors cryptocurrencies, it could lead to the resolution of the Ripple vs. SEC case and potentially clear the path for the approval of an XRP ETF. This development could have far-reaching implications for the broader cryptocurrency market, as asset managers may launch more exchange-traded fund (ETF) products based on various digital tokens.
The re-election of Donald Trump, with his supportive stance towards cryptocurrencies, marks a pivotal moment for the industry. As the crypto world watches closely, the potential changes in regulatory leadership and policies could shape the future of digital assets in the United States.
