SEC Chairman Gary Gensler.Evelyn Hockstein/Associated Press
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The chips in the SEC’s crosshairs are recovering after Chairman Gary Gensler announced his resignation.
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Ripple’s XRP token traded up more than 28% Friday morning on the news.
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Gensler will leave office on January 20, the day Donald Trump takes office.
As bitcoin hits a historic six-figure price, smaller cryptocurrencies are enjoying their own rally following upcoming changes at the U.S. Securities and Exchange Commission.
Chips that previously fell into the regulatory crosshairs jumped double digits on news that SEC Chairman Gary Gensler plans to resign upon Donald Trump’s inauguration on January 20.
Ripple Lab’s XRP was up more than 28% as of 10:15 a.m. ET on Friday. After surpassing the $1 mark for the first time in three years earlier this week, it reached $1.49 before paring some gains.
Ripple ended a long-running dispute with the Gensler-led regulator over whether its token was a security. The same day the president announced his resignation, a federal court in Texas rejected an attempt by the SEC to expand the definition of a securities dealer to encompass cryptocurrency companies, according to Coindesk.
Other cryptos targeted by the SEC also rose, with Cardano’s ADA token rising over 13% and Solana rising almost 2%. Both tokens have been named in lawsuits against the SEC in recent years.
Overall, the industry is positioning itself for a crypto renaissance under the leadership of President-elect Donald Trump, who has billed himself as the first “president of crypto.”
Trump had promised to fire Gensler and ease regulations in an effort to make the United States a hub for digital assets. Bitcoin has soared more than 47% since the November 5 election, while XRP, ADA, and SOL have all outperformed the apex token during this period.
Under Gensler, the SEC took a tougher approach to the industry, cracking down on what it saw as crypto issuers trading in unregistered securities. The industry criticized the regulator’s approach for creating what it said was a chilling effect on business and innovation.
“He was actively trying to curb the spread of cryptocurrencies in the financial sector,” said Alex Kuptsikevich, chief market analyst at FxPro, in a written commentary. “Now traders are betting on a turnaround in crypto policy, not just more conciliatory regulation.”
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