Market optimism surged for Ripple (XRP) following intensified speculation about a pro-crypto nominee for the next SEC Chair, fueled by reports after the Thanksgiving holiday. Former SEC Commissioner Paul Atkins is the leading contender to replace Gary Gensler, with betting platform Kalshi assigning him a 68% probability of taking the role. Brad Bondi, another candidate, trails with a 20% likelihood.
Both Atkins and Bondi are viewed as crypto-friendly candidates. Analysts suggest their leadership could significantly shift the SEC’s stance on crypto enforcement, particularly regarding its appeal in the Ripple case. Former SEC Office of Internet Enforcement Chief John Reed Stark highlighted Atkins’ pro-market approach and aversion to overregulation, emphasizing that such a philosophy would likely favor the broader crypto market and Ripple’s ongoing legal battles. Stark also noted Bondi’s even stronger crypto-positive stance, predicting he might end active investigations and dismiss crypto-related cases entirely.
The legal struggle between the SEC and Ripple remains a focal point for the crypto community. A July 2023 ruling by Judge Analisa Torres, which declared that programmatic XRP sales did not meet the Howey Test criteria, marked a significant win for Ripple. If the SEC, under new leadership, withdraws its appeal, the decision could set a legal precedent, potentially expediting the approval of XRP-spot ETFs.
Ripple’s potential triumph has already caught the attention of major players, including Bitwise Invest, Grayscale, WisdomTree, and Canary Funds, all of whom have filed for XRP-inclusive ETFs. Such products could drive demand for Ripple (XRP), much like Bitcoin’s (BTC) ETF success, which has propelled BTC prices by 127% in 2024, reaching $96,324.
Currently, Ripple (XRP) demonstrates strong bullish signals, trading above its 50-day and 200-day exponential moving averages (EMAs). A breakout above Saturday’s high of $1.9591 could drive prices toward $2, with January 2018’s all-time high of $3.5505 as a potential target.
However, challenges persist. XRP’s 14-day RSI at 85.41 indicates overbought conditions, heightening the risk of a correction. Additionally, any decision by the SEC to continue pursuing its appeal in the Ripple case could dampen market sentiment.
Investors are closely monitoring updates on the SEC Chair nomination and Ripple’s legal developments, as both are critical to shaping XRP’s future trajectory.
