The recent re-election of Donald J. Trump as the 47th President of the United States has sparked a wave of anticipation and speculation within the cryptocurrency community. As Trump embarks on his new term, there is growing curiosity about whether he will fulfill his promises to support the growth of the crypto industry. A significant aspect of this involves commitments made earlier this year concerning SEC Chair Gary Gensler, which could have profound implications for high-profile cases such as the Ripple vs. SEC lawsuit. Additionally, this development might open doors for the approval of a spot XRP ETF, thus reshaping the regulatory landscape for cryptocurrencies in the U.S.
Trump May Fire Gensler, Benefiting Ripple Lawsuit
Donald Trump has strategically aligned himself with the crypto community, making concerted efforts to garner the crypto vote during his election campaign. By speaking at major Bitcoin conferences, launching his own tokens, and pledging to transform the United States into the “crypto capital of the world,” Trump has captured the attention of crypto enthusiasts nationwide. His victory in the 2024 presidential election suggests the likelihood of a more favorable regulatory environment for digital assets.
During his address at the largest U.S. Bitcoin Conference in late July, Trump made a striking promise: to fire SEC Chair Gary Gensler on his first day in office. This statement was met with enthusiastic applause from the audience, highlighting the tension between the SEC and the crypto industry under Gensler’s leadership. The SEC, under Gensler, has pursued numerous legal actions against crypto companies and struggled to provide clear guidance on the classification of digital assets as securities, often leading to regulatory ambiguity.
One of the most prominent legal battles involving the SEC is its case against Ripple. Initiated nearly four years ago, this lawsuit accuses Ripple, led by CEO Brad Garlinghouse, of conducting $1.3 billion worth of unregistered securities sales through its initial XRP offerings. Despite several developments, the case remains unresolved. With Trump now at the helm, the potential removal of Gensler could significantly benefit Ripple by providing a more amicable regulatory landscape.
However, there are several factors to consider before drawing conclusions. Firstly, Trump will not assume office for several months, during which time the legal landscape may evolve. Secondly, Trump’s promise to fire Gensler must be actualized for any substantial change to occur. Lastly, the identity and policies of the next SEC Chair, especially concerning cryptocurrencies and the Ripple lawsuit, remain unknown. Therefore, XRP investors may need to exercise patience as they await the lawsuit’s resolution and its impact on the asset’s price.
Will There Be an Approval for XRP ETF?
Ripple CEO Brad Garlinghouse has outlined several crypto-friendly measures for President-elect Donald Trump to consider during his first 100 days in office. Among these measures is the resolution of the ongoing Ripple vs. SEC lawsuit, a move that would greatly benefit the crypto industry. Garlinghouse, along with the broader crypto community, has celebrated the electoral victories of crypto-friendly candidates as well as Trump’s 2024 presidential win.
Garlinghouse has also publicly congratulated Trump and provided a suggested checklist for his initial days in office. His recommendations include firing Gensler without delay and appointing a more favorable candidate as SEC Chair, such as Christopher Giancarlo, former chairman of the Commodity Futures Trading Commission (CFTC); Brian Brooks, former Acting Comptroller of the Currency; or Dan Gallagher, a former SEC commissioner. These appointments, he argues, could significantly enhance the rule of law and the SEC’s reputation.
With the potential reassessment of crypto assets, driven by previous uncertainties regarding their status as securities, asset managers may be encouraged to launch more exchange-traded fund (ETF) products based on various cryptocurrency tokens. If Trump successfully establishes a crypto-friendly regulatory framework as promised, it could lead to the resolution of the Ripple vs. SEC case, potentially paving the way for the approval of an XRP ETF.
