Donald Trump

Chair

TL:DR;
<ul>
 <li>Led by bitcoin, most of the cryptocurrency market is well in the green today, but this is not the case for Ripple’s native token.</li>
 <li>This comes in a particularly confusing time as Donald Trump made his choice for a new SEC chair and he is someone with good history with the crypto industry.</li>
</ul>
<a href="https://cryptopotato.com/wp-content/uploads/2024/04/RipplevSEC_CB.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a>
<h2 id="pro-sec-chair-at-last">Pro-SEC Chair at Last?</h2>
It was roughly four years ago when the US Securities and Exchange Commission initiated its lawsuit against Ripple, alleging the company and two of its top execs of illegally raising $1.3 billion by selling XRP tokens as unregistered securities. Since then, the case has undergone many tribulations and developments, but most have gone well for Ripple, which has secured a few partial wins.
The lawsuit was close to its resolution this summer when a US judge ruled that the firm needed to pay $125 million and it would be settled. However, the SEC, still under Chair Gary Gensler, appealed a 2023 verdict, thus extending the case.
Donald Trump’s victory in the presidential elections on November 5, though, changed the complexion of the game as he had <a href="https://cryptopotato.com/10-promises-donald-trump-has-made-regarding-bitcoin-and-crypto/" data-wpel-link="internal" rel="noopener noreferrer nofollow">promised</a> to fire Gensler on his first day in office. The current SEC Chair didn’t wait to be fired and <a href="https://cryptopotato.com/sec-chairman-gary-gensler-confirms-he-will-step-down-in-january/" data-wpel-link="internal" rel="noopener noreferrer nofollow">announced</a> his resignation a few weeks back, which will become official on January 20.
All crypto eyes turned back on Trump, expecting a friendlier <a href="https://cryptopotato.com/bitcoin-blasts-through-103000-after-trumps-pro-crypto-pick-for-sec/" data-wpel-link="internal" rel="noopener noreferrer nofollow">replacement</a> at the helm of the securities regulator. His nomination is <a href="https://www.npr.org/2024/12/04/g-s1-36803/trump-crypto-paul-atkins-sec-chair" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">indeed pro-crypto</a>, at least historically – former SEC Commissioner Paul Atkins. Consequently, XRP should be surging, right?
<h2 id="why-is-xrp-dumping">Why Is XRP Dumping?</h2>
Most of the aforementioned developments, including Trump’s win and Gensler’s resignation, led to massive rallies for Ripple’s native token. The asset shot up from $0.6 a month ago to<a href="https://cryptopotato.com/ripple-price-eyes-3-as-xrp-goes-parabolic-who-is-behind-this-rally/" data-wpel-link="internal" rel="noopener noreferrer nofollow"> almost $3</a> earlier this week, thus skyrocketing by more than 400% within this timeframe.
Now, though, XRP has plummeted by 12% on a daily scale, going below $2.3. Moreover, it lost its spot as the third-largest cryptocurrency to Tether as its market cap dropped to $130 billion.
The timing is quite confusing, given the positive news coming from the future Trump administration. So far, it seems like the rally was a classic ‘buy-the-rumor, sell-the-news’ event since XRP <a href="https://cryptopotato.com/how-high-can-ripple-xrp-go-with-gary-gensler-out-of-the-picture-ai-bots-analyze/" data-wpel-link="internal" rel="noopener noreferrer nofollow">skyrocketed</a> in anticipation of a big change in the SEC and is dumping once that change comes to fruition.
The post <a href="https://cryptopotato.com/why-is-ripple-xrp-plunging-when-trump-picked-pro-crypto-sec-chair/" rel="noopener noreferrer nofollow">Why Is Ripple (XRP) Plunging When Trump Picked Pro-Crypto SEC Chair?</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Why Is Ripple (XRP) Plunging When Trump Picked Pro-Crypto SEC Chair?

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