Donald J. Trump has been re-elected as the 47th US President. The crypto industry anticipates whether he will fulfill his promises to support its growth, including commitments made this year’s involving SEC Chair Gary Gensler. This could significantly affect the Ripple vs. SEC lawsuit and potentially pave the way for the approval of a spot XRP ETF.
Trump May Fire Gensler, Benefiting Ripple Lawsuit
Trump has strategically targeted the crypto vote in this election by speaking at the Bitcoin conference, releasing his own tokens, and vowing to turn the U.S. into the “crypto capital of the world.”
With Donald Trump winning the 2024 U.S. presidential election, the crypto community is likely to see a more favorable regulatory environment. During the largest US Bitcoin Conference in late July, Donald Trump vowed to fire SEC Chair Gary Gensler on his first day back in office, a statement that drew loud cheers.
Also read: Bernstein Analysts Foresee Crypto-Friendly SEC and Senate Banking Committee To Speed Up Regulatory Clarity
With Trump officially declaring victory, speculation arises whether Gensler will indeed be ousted come 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 has been with Ripple, initiated almost four years ago when it accused the company, led by Brad Garlinghouse, of conducting $1.3 billion worth of unregistered securities sales through its initial XRP offerings. The case remains unresolved despite several developments.
With Trump now leading, Ripple could benefit significantly if Gary Gensler is ousted 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 follow through on his promise to fire Gensler. Third, the next SEC Chair’s identity and policies, especially concerning cryptocurrencies and the Ripple lawsuit, remain unknown.
As a result, XRP investors might need to wait longer to see the lawsuit’s outcome 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 celebrates with the crypto community the electoral victories of crypto-friendly candidates and Donald Trump’s 2024 presidential election win.
A reassessment of crypto assets is expected, given the previous uncertainty over their status as securities. It is anticipated that asset managers will launch more exchange-traded fund (ETF) products based on various cryptocurrency tokens.
Also read: Will Gary Gensler Resign by December? Here’s When We Could See a New SEC Chair
Interestingly, Garlinghouse 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 clearing the path for an XRP ETF approval.
