With Donald J. Trump being re-elected as the 47th President of the United States, the cryptocurrency industry is abuzz with speculation. The community is keenly observing whether the new administration will fulfill its commitments to bolster the sector’s growth. Among the many promises made, the spotlight is on Trump’s plans regarding SEC Chair Gary Gensler. The outcome could significantly influence the ongoing Ripple vs. SEC lawsuit and potentially open doors for the approval of a spot XRP ETF.
Trump May Fire Gensler, Benefiting Ripple Lawsuit
In a strategic move to win over the crypto vote, Trump has attended major Bitcoin conferences, introduced his own tokens, and pledged to transform the United States 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 climate.
During the largest Bitcoin Conference held in the United States in late July, Trump made a bold declaration to dismiss SEC Chair Gary Gensler on his first day back in office. This announcement was met with enthusiastic support from the attendees.
The anticipation is building around whether Gensler will indeed be removed from his position come January. Under Gensler’s leadership, the SEC has been involved in numerous legal battles against crypto firms, often leading to regulatory ambiguities. The most notable of these is the lawsuit against Ripple, which began almost four years ago. The SEC accused Ripple, under CEO Brad Garlinghouse, of conducting $1.3 billion in unregistered securities sales through its initial XRP offerings.
With Trump now at the helm, Ripple could experience significant advantages if Gensler is replaced at the SEC. However, several factors need consideration:
- Trump’s official start in office is still a few months away.
- He needs to follow through on his commitment to remove Gensler.
- The identity and policies of the next SEC Chair, especially concerning cryptocurrencies and the Ripple case, remain uncertain.
Consequently, XRP investors may need to wait longer for the resolution of the lawsuit and its potential effects on XRP’s market value.
Will There Be an Approval for XRP ETF?
Ripple CEO Brad Garlinghouse has outlined several crypto-supportive actions that President-elect Donald Trump should prioritize in his first 100 days. Among these is resolving the Ripple vs SEC lawsuit. Garlinghouse has also expressed support for the election of numerous crypto-friendly candidates, celebrating Trump’s 2024 victory with the crypto community.
@realDonaldTrump, Congratulations! Some fodder for your first 100-day checklist to get things moving:
- Fire Gensler. Day 1, no delays.
- Consider appointing Giancarlo, Brooks, or Gallagher—massive upgrades for rebuilding the rule of law and reputation at the SEC.
Given the prior uncertainties about the status of crypto assets as securities, a reassessment is expected. This could lead to a surge in exchange-traded fund (ETF) products focused on various cryptocurrency tokens.
Garlinghouse has proposed several candidates to replace 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.
If Trump successfully implements a crypto-friendly regulatory framework, as promised, it could lead to a swift resolution of the Ripple vs SEC case, potentially paving the way for the approval of an XRP ETF. This development would mark a significant milestone for Ripple and the broader cryptocurrency market.
