Trump wants to fire SEC Chairman Gensler, but why is the Ripple (XRP) price lagging today?

Donald J. Trump has been officially elected the 47th President of the United States. The crypto sector is now watching with great interest its promises to support and further grow the industry. In particular, his statements about the American Securities and Exchange Commission (SEC) and its current chairman Gary Gensler have caused a lot of speculation.

Trump wants to fire SEC Chairman Gensler

During the Nashville Bitcoin Conference earlier this year, Trump spoke plainly. He promised to fire Gensler once he returns to office, putting an end to what he called the Biden administration’s “anti-crypto crusade.”

With his victory, that promise suddenly becomes a lot more realistic. The question now is whether Gensler will indeed lose his position once Trump takes office in January, and what this means for the crypto sector.

The Ripple Lawsuit and Possible Benefits for XRP

Gensler’s leadership at the SEC has been criticized by many crypto companies. Under his administration, the SEC has filed multiple lawsuits against prominent industry players, including Ripple. This legal battle, which has been going on for almost four years, has put great pressure on Ripple and its currency XRP. Despite a partially positive ruling in July 2023, which temporarily doubled the price of XRP, the uncertainty surrounding the case continues to weigh heavily.

Trump’s return to the White House could be a game changer. If Gensler is indeed replaced, it may offer a fresh start for Ripple and other crypto companies. Ripple can therefore finally be freed from the legal shadow that hinders the growth of XRP. Still, it remains to be seen how the SEC’s new leadership will handle this matter and whether there will be more clarity on digital asset regulations.

Why is the XRP price lagging?

The crypto market has received Trump’s victory with enthusiasm. Bitcoin reached a new all-time high above $75,000, while Solana and Dogecoin posted significant gains. XRP, on the other hand, remained relatively modest in its response, rising just 4%. At one point, XRP even temporarily dropped to eighth place in market capitalization, before returning to seventh place.

The reluctance around XRP can be attributed to the ongoing uncertainty. Although Trump has promised to fire Gensler, it remains unclear who his successor will be and how that person will deal with Ripple and the broader crypto sector. Until then, the market remains cautious.