If Trump Is to Fire SEC Chair Gensler on Day 1, Why Isn't Ripple (XRP) Surging Today?

With Donald J. Trump officially declared the 47th U.S. President, the cryptocurrency market is keenly observing whether he will fulfill his promises to support the industry. One of the key commitments made during the Nashville Bitcoin Conference was to fire Gary Gensler, the current Chair of the Securities and Exchange Commission (SEC), on his first day in office.

The Context of Gensler's Position

During his campaign, Trump emphasized his intention to remove Gensler, who has led the SEC in multiple lawsuits against crypto firms. Despite some victories, Gensler's tenure has been marked by a lack of clear regulations, leading to confusion about which digital assets are classified as securities.

The most notable case has been against Ripple Labs, which has been embroiled in a lawsuit since 2020, where the SEC claims that XRP sales amounted to unregistered securities sales totaling $1.3 billion. The outcome of this case could significantly impact the future of Ripple and XRP.

Market Reactions to Trump's Victory

In the wake of Trump's election win, the cryptocurrency market experienced a surge, with Bitcoin reaching an all-time high above $75,000. However, XRP's price increase has been relatively modest, rising only about 4% on the day. This raises the question: why isn't XRP experiencing a more significant rally?

Factors Limiting XRP's Surge

• Timeframe for Change: Trump will not take office until January, leaving uncertainty about the immediate future of the SEC and Gensler's position.

• Uncertainty About Successor: Even if Gensler is dismissed, the identity and regulatory stance of the next SEC Chair remain unknown, creating further uncertainty for XRP holders.

• Ongoing Legal Issues: The unresolved lawsuit between Ripple and the SEC continues to loom over XRP's price, contributing to a lack of investor confidence.

As the market digests these factors, XRP's potential rally may take longer than anticipated, leaving investors waiting for clearer signals regarding regulatory changes and the lawsuit's outcome.