The post Why XRP Price is Surging Today? appeared first on Coinpedia Fintech News
XRP the 7th largest cryptocurrency has experienced a whooping surge of around 15% over the last 24 hours, beating the broader crypto market trend. While Bitcoin and Ethereum saw losses of 1.4% and 3.8%, respectively, XRP briefly crossed the $0.80 mark. This impressive rally is triggered by two main developments: regulatory news surrounding SEC Chair Gary Gensler’s potential resignation and Ripple’s upcoming stablecoin launch, RLUSD.
There are also speculations that the Ripple vs SEC case may get dismissed once Gensler steps down. Here are some interesting factors that excited the XRP investors this week.
Speculation on SEC Chair Gensler’s Exit
One of the driving factors behind XRP’s recent rise is speculation about U.S. SEC Chair Gary Gensler’s possible resignation. In a recent address, Gensler reflected on his tenure and highlighted the SEC’s efforts to modernize financial regulations, particularly in the crypto sector. He confirmed that Bitcoin is not considered a security, a stance that aligns with former SEC Chair Jay Clayton.
However, Gensler’s comments about the need for clearer regulatory distinctions among digital assets and his expression of gratitude for his time in office raised questions about his future at the SEC. If Gensler does step down, it could lead to a more favorable regulatory environment for XRP and other cryptocurrencies.
Moreover, there are at least 18 US states filed a lawsuit against the SEC overreach. With Trump’s win, everyone is hopeful of clear crypto policies and regulations.
Ripple’s RLUSD Stablecoin Launch
Ripple’s announcement of its upcoming stablecoin, RLUSD, pegged to the U.S. dollar, has also contributed to XRP’s upward momentum. The stablecoin, which will be issued on both the XRP Ledger and Ethereum blockchain, is designed to enhance Ripple’s blockchain offerings with improved speed, security, and cost efficiency.
Ripple’s President, Monica Long, emphasized that RLUSD would address growing demand in regions such as APAC, the EU, and Australia, particularly in decentralized finance (DeFi).
In addition, Ripple plans to launch RLUSD under a New York Trust license, providing a more robust regulatory framework than a traditional money transfer license. This move is aimed at ensuring transparency and rigorous oversight of the stablecoin’s reserves, which will be fully backed by low-risk, highly liquid assets. The involvement of the New York Department of Financial Services (NYDFS) guarantees that Ripple will adhere to strict reserve requirements, further boosting confidence in RLUSD’s long-term viability.
Together, these developments have sparked optimism for XRP, driving its recent surge.
