Ripple’s XRP token has soared its highest price since May 2021, fueled by the ongoing crypto market rally and the announcement of U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler’s resignation plans. XRP saw a sharp 27.5% rise in the 24 hours leading up to Friday morning, reaching $1.39, according to data from Tokenize Xchange. Over the past month, XRP’s value has climbed more than 150%, rebounding from around $0.50, where it had hovered for nearly two years.

Drivers Behind XRP’s Surge

• Extended Crypto Market Rally
  XRP’s gains align with a broader rally across the cryptocurrency market. Market optimism has been spurred by the re-election of crypto supporter Donald Trump as U.S. president, reigniting confidence in a more favorable regulatory environment. The Block’s GMCI 30 Index, which tracks the performance of the top 30 cryptocurrencies, rose 7.5% in the past 24 hours, reflecting positive sentiment across the board.
• Gary Gensler’s Departure AnnouncementThursday’s news of Gary Gensler’s departure as SEC Chair — effective January 20, 2025 — added fuel to XRP’s rally. Gensler, who has taken a hard stance against crypto companies during his tenure, including Ripple, Coinbase, Binance, and Kraken, is viewed as a controversial figure in the industry. His enforcement actions have earned him a reputation as a tough regulator, but his exit raises hopes for more lenient regulatory oversight in the future.
• Ripple’s Legal Battle and Future ProspectsRipple’s ongoing legal battle with the SEC has been pivotal in shaping XRP’s price movements. The SEC alleged in 2020 that Ripple raised $1.3 billion through the sale of XRP, classifying it as an unregistered security. Ripple has consistently fought back, and recent developments suggest that the most challenging phase of the dispute may be over. Ripple’s Chief Legal Officer, Stuart Alderoty, recently remarked that the SEC’s attempts to distract the industry are “just background noise” now.
• Anticipated Spot XRP ETFsInvestors are also watching the potential launch of spot XRP exchange-traded funds (ETFs) in the U.S. Leading issuers, including 21Shares, Canary Capital, and Bitwise, have already filed for XRP ETFs, which could further legitimize the token and attract institutional investors.

Conclusion

XRP’s latest price surge reflects shifting market dynamics and the potential for regulatory clarity in the crypto space. With the departure of Gensler and Ripple’s legal battle reaching critical milestones, XRP appears poised for continued momentum.

This rally is a testament to how regulatory and legal developments can dramatically impact cryptocurrency markets, highlighting the importance of policy shifts for the sector’s growth and investor sentiment.