SEC Chair Gensler's Resignation Decision Welcomed by Crypto Markets
The announcement of Gary Gensler's resignation as Chairman of the U.S. Securities and Exchange Commission (SEC) has triggered volatility in cryptocurrency markets. Gensler is known for his criticisms and tough stance towards the crypto industry. Donald Trump, who was elected President of the United States, also aimed to remove the SEC Chairman. According to the statement, Gensler plans to leave his position in January 2025.
Following Gensler's announcement, Ripple's cryptocurrency XRP has surged, reaching as high as $1.40 with an increase of nearly 25%. Ripple has been engaged in a long-standing legal battle with the SEC regarding the status of digital assets. The ADA token, linked to the Cardano blockchain, has also seen a 12% increase since yesterday, after suffering setbacks from the SEC in previous periods. The SOL token of the Solana network has recorded a peak level of $264 in its recent upward momentum. The common feature of these three altcoins is that they have been highlighted in SEC lawsuits.
Impact of Trump on Crypto Markets Bitcoin rose by 47% following Trump's election victory, while XRP, ADA, and SOL gained even more value. Market analysts expect an increase in interest towards cryptocurrencies outside of Bitcoin. This trend is particularly notable with rising options for Solana.
As Bitcoin approaches the $100,000 level, a positive sentiment continues to prevail within the crypto industry. Expectations that Donald Trump will implement crypto-friendly policies are boosting enthusiasm in the markets. Trump promises to create supportive crypto regulations in the U.S. and establish a strategic Bitcoin reserve.
Expectations of Change in SEC Leadership Following Gary Gensler's announcement of his resignation in January, Paul Atkins has emerged as a prominent candidate for the SEC Chair position. Atkins is expected to adopt a more lenient approach towards cryptocurrency regulations.
Other candidates include Brad Bondi. If Bondi is appointed, there is a possibility of halting all crypto-related investigations and resolving existing lawsuits.
Positive Outlook for the Future of Crypto Markets After the change in SEC leadership, the most important topic to watch in the crypto world will be whether the regulator withdraws its appeal in the Ripple case. If the SEC backs down in this case, it is believed that this development could lead to a significant surge for XRP. Additionally, XRP's potential victory could serve as a precedent for the crypto market, marking a turning point for the industry.
In conclusion, Gensler has taken a tough stance towards crypto markets during his tenure, attempting to steer the market with sanctions. The general sentiment that a more constructive approach could be adopted towards the crypto sector following the change in SEC leadership is keeping morale high in the markets.