In a surprising turn of events, XRP, the seventh-largest cryptocurrency by market capitalization, has surged by an impressive 15% within the last 24 hours. This rise stands out against the broader crypto market trend, where Bitcoin and Ethereum have faced declines of 1.4% and 3.8%, respectively. XRP briefly surpassed the $0.80 threshold, a significant milestone driven by notable developments including regulatory news concerning the potential resignation of SEC Chair Gary Gensler and Ripple’s anticipated stablecoin launch, RLUSD.
Speculation Surrounding SEC Chair Gensler’s Potential Departure
One of the key factors propelling XRP’s recent rise is the speculation regarding U.S. SEC Chair Gary Gensler’s possible resignation. During a recent address, Gensler reflected on his tenure, emphasizing the SEC’s efforts to modernize financial regulations, with a particular focus on the cryptocurrency sector. Importantly, he confirmed that Bitcoin is not classified as a security, a stance consistent with former SEC Chair Jay Clayton.
However, Gensler’s remarks on the necessity for clearer regulatory distinctions among digital assets, coupled with his expression of gratitude for his time at the SEC, have fueled questions about his future role. Should Gensler decide to step down, it could usher in a more favorable regulatory environment for XRP and the broader cryptocurrency landscape.
Moreover, it is noteworthy that at least 18 U.S. states have filed a lawsuit against the SEC overreach, and with the political shift following Trump’s win, there is optimism for clear and comprehensive crypto policies and regulations.
Ripple’s Upcoming RLUSD Stablecoin Launch
Another catalyst behind XRP’s upward trajectory is Ripple’s announcement of its forthcoming stablecoin, RLUSD, which will be pegged to the U.S. dollar. This stablecoin, set to be issued on both the XRP Ledger and Ethereum blockchain, is poised to enhance Ripple’s blockchain offerings by boosting speed, security, and cost efficiency.
Ripple’s President, Monica Long, has highlighted that RLUSD is intended to meet increasing demand in regions such as APAC, the EU, and Australia, especially in the rapidly growing decentralized finance (DeFi) sector.
Additionally, Ripple plans to launch RLUSD under a New York Trust license, offering a more robust regulatory framework compared to a traditional money transfer license. This strategy aims to ensure transparency and rigorous oversight of the stablecoin’s reserves, which will be fully backed by low-risk, highly liquid assets. The involvement of the New York Department of Financial Services (NYDFS) guarantees adherence to strict reserve requirements, further strengthening confidence in RLUSD’s long-term sustainability.
These developments have collectively ignited optimism among XRP investors, contributing significantly to the cryptocurrency’s recent surge. As the market continues to evolve, stakeholders remain watchful of regulatory changes and technological advancements that may further influence XRP’s trajectory.
