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

TL:DR;

• Led by bitcoin, most of the cryptocurrency market is in the green today, but this is not the case for Ripple’s native token.
• This comes at a particularly confusing time, as Donald Trump has chosen a new SEC Chairman and he is someone with a good history in the crypto industry.

Finally pro-SEC president?

It was approximately four years ago when the US Securities and Exchange Commission launched its lawsuit against Ripple, alleging that the company and two of its top executives illegally raised $1.3 billion by selling XRP tokens as unregistered securities. Since then, the case has gone through many tribulations and developments, but most of them have gone well for Ripple, which has achieved some partial victories.

The lawsuit was close to resolution this summer when a U.S. judge ruled that the company needed to pay $125 million and a settlement would be reached. However, the SEC, still under Chairman Gary Gensler, appealed a 2023 verdict, thus expanding the case.

However, Donald Trump’s victory in the November 5 presidential election changed the face of the game, as he had promised to fire Gensler on his first day in office. The current president of the SEC did not wait to be fired and announced his resignation a few weeks ago, which will become official on January 20.

All cryptocurrency eyes turned to Trump, hoping for a friendlier replacement at the helm of the securities regulator. His nomination is actually pro-cryptoat least historically: former SEC commissioner Paul Atkins. Consequently, XRP should be rising, right?

Why is XRP dumping?

Most of the aforementioned events, including Trump’s victory and Gensler’s resignation, sparked massive protests in favor of Ripple’s native token. The asset skyrocketed from $0.6 a month ago to almost $3 earlier this week, thus skyrocketing more than 400% in this period.

Now, however, XRP has plummeted 12% on a daily basis, falling below $2.3. Additionally, it lost its place as the third-largest cryptocurrency to Tether as its market capitalization fell to $130 billion.

The timing is quite confusing, given the positive news coming from the future Trump administration. So far, it looks like the rally was a classic “buy the rumor, sell the news” event, as XRP skyrocketed in anticipation of a big change at the SEC and will unravel once that change becomes a reality.