Donald J. Trump has been re-elected as the 47th US president. The crypto industry expects him to keep his promises to support growth, including those made this year regarding SEC Chairman Gary Gensler. This would be the Ripple vs. SEC lawsuit could significantly impact and potentially pave the way for the approval of a spot XRP ETF.
Trump can fire Gensler, which will benefit the Ripple lawsuit
Trump has strategically targeted the crypto vote this election, speaking at the Bitcoin conference, releasing his own tokens and promising to turn the US into the “crypto capital of the world.”
With Donald Trump winning the 2024 US presidential election, the crypto community is likely to see a more favorable regulatory environment. At the largest US Bitcoin conference in late July, Donald Trump vowed to fire SEC Chairman Gary Gensler on his first day back in office, a statement that drew loud cheers.
Also Read: Bernstein Analysts Envision Crypto-Friendly SEC and Senate Banking Committee to Accelerate Regulatory Clarity
Now that Trump officially announces victory, speculation arises as to whether Gensler will indeed be impeached in January. Under Gensler’s leadership, the SEC has led numerous lawsuits against crypto companies and struggled to clarify which digital assets are securities, often leading to regulatory confusion.
Interestingly, the SEC’s most prominent legal battle was with Ripple, which began nearly four years ago when the Brad Garlinghouse-led company was accused of conducting $1.3 billion in unregistered securities sales through its initial XRP offers. The case remains unsolved despite several developments.
With Trump in charge, Ripple could benefit significantly if Gary Gensler is removed from his position at the SEC in the coming months. However, there are several things to consider:
First, Trump won’t take office for a few months. Second, he must make good on his promise to fire Gensler. Third, the identity and policies of the next SEC chairman, especially regarding cryptocurrencies and the Ripple lawsuit, remain unknown.
As a result, XRP investors may have to wait longer to see the outcome of the lawsuit and its impact on the asset’s price.
Will there be an approval for XRP ETF?
Ripple CEO Brad Garlinghouse outlines several crypto-friendly measures that President-elect Donald Trump should implement in his first 100 days, including resolving the Ripple vs SEC lawsuit.
He also joins the crypto community in celebrating the election victories of crypto-friendly candidates and Donald Trump’s victory in the 2024 presidential election.
A reassessment of crypto assets is expected given the previous uncertainty about their status as securities. Asset managers are expected to launch more exchange-traded fund (ETF) products based on various cryptocurrency tokens.
Also read: Will Gary Gensler resign in December? This is when we could see a new SEC chairman
Interestingly, Garlinghouse has proposed several candidates to succeed 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 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 an XRP ETF to be approved.
Credit : coinpedia.org
