Ripple’s XRP has become the third-largest cryptocurrency by market cap, overtaking popular tokens like Solana, USDT and Binance Coin, as a new era of crypto-friendly policy begins to take shape in Washington, DC.
On Monday, XRP had climbed an eye-popping 40% in 24 hours, reaching $2.80 for the first time in seven years. The coin has attracted over $120 billion in new investment, and reached a market cap of $156 billion since Donald Trump and a host of other crypto-friendly candidates won election on November 5.
The surge in XRP’s price comes amid signs that the legal pressure that has been bearing down on Ripple for years is about to let up. Most notably, Securities and Exchange Commission chair Gary Gensler—who has been the crypto industry’s prime antagonist—announced his resignation and pundits are predicting the agency is likely to drop a number of lawsuits as Trump prepares to take office.
Those lawsuits include a long-running SEC case against Ripple, which is currently making its way through appeals court after the judge sided with Ripple in August, fining the company $2 billion less than the SEC had originally asked for. The SEC brought the suit in 2020, accusing Ripple of illegally raising money by selling XRP without registering it as a security.
The XRP price surge also comes as investors bet on the future of Ripple products. Fox Business reported that the company’s long-awaited stablecoin, RLUSD, is poised for regulatory approval in New York as soon as Dec. 4. Also adding fuel to bullish sentiment around XRP is the speculation that an XRP exchange-traded fund, like those already approved for Bitcoin and Ethereum, is just around the corner.
While Bitcoin and other cryptocurrencies soared in the immediate aftermath of the election, XRP lagged behind until recently. The currency had held flat most of the year, stuck between 40 cents and 60 cents before breaking out earlier this month.
The broader crypto market has grown $1.2 trillion since Election Day and investors expect those gains to continue into next year as Trump makes good on his campaign promises to make America the “crypto capital of the planet.” The president-elect has backed a strategic Bitcoin reserve and a crypto advisory council. He is also reportedly considering the creation of a White House role dedicated specifically to cryptocurrency policy which industry leaders are hoping would serve as a direct line to the President.
