Cryptos targeted by regulation are soaring on SEC chair's plan to step down
Evelyn Hockstein/Associated Press
- Tokens in the crosshairs of the SEC are rallying after chairman Gary Gensler said he would resign.
- Ripple's XRP token traded over 28% higher Friday morning on the news.
- Gensler will step down on January 20th, the day Donald Trump takes office.
While bitcoin shoots toward a historic six-figure price, smaller cryptocurrencies are enjoying their own rally on coming changes to the US Securities and Exchange Commission.
Tokens that previously fell into regulatory crosshairs have jumped by double digits on the news that SEC Chairman Gary Gensler plans to step down when Donald Trump is inaugurated on January 20.
Ripple Lab's XRP was up over 28% as of 10:15 a.m. ET on Friday. After topping the $1 mark for the first time in three years earlier this week, it reached as high as $1.49 before paring some gains.
Ripple ended a long-running dispute with the Gensler-led regulator over whether its token was a security. On the same day the chairman announced his resignation, a Texas federal court dismissed an SEC attempt to expand the definition of a securities dealer to encompass cryptocurrency companies, according to Coindesk.
Other SEC-targeted cryptos also surged, with Cardano's ADA token reaching over 13% and Solana rising by nearly 2%. Both tokens had been named in SEC lawsuits in recent years.
Overall, the industry is positioning for a crypto renaissance under President-elect Donald Trump, who has styled himself as the first "crypto president."
Trump had promised to fire Gensler and ease regulation in a bid to make the US a hub for digital assets. Bitcoin has climbed over 47% since the November 5 election, while XRP, ADA, and SOL have all outperformed the apex token in that time.
Under Gensler, the SEC took a more heavy-handed approach to the industry, cracking down on what it saw to be crypto issuers dealing in unregistered securities. The industry criticized the regulator's approach for creating what it said was a chilling effect on business and innovation.
"He had been actively trying to curb the spread of cryptocurrencies throughout the financial industry," FxPro's chief market analyst Alex Kuptsikevich said in written commentary. "Now, traders are betting on a U-turn in crypto policy, not just a more dovish regulation."