What Will Happen to the XRP Price When Trump Comes? What to Expect If Agreement with New SEC?

The new year brings renewed hope for XRP, as analysts predict a significant rally if Ripple achieves a positive outcome in its ongoing legal battle with the US Securities and Exchange Commission (SEC).

The lengthy lawsuit, initiated by the SEC in December 2020, accused Ripple of violating securities laws through the sale of XRP to institutional investors. While Judge Analisa Torres ruled last year that XRP was not a security, the SEC appealed the decision, leaving the case dragged on.

Carlos Guzman, research analyst at GSR, said that a positive decision could serve as a significant catalyst for the price of XRP. “If the SEC appeal is denied or the new SEC management chooses to settle instead, it would be a big win for Ripple,” Guzman said.

Crypto even The industry is pinning its hopes on the new administration of President-elect Donald Trump for regulatory relief. Trump, who will take office on January 20, has signaled that he will take a pro-crypto stance by nominating crypto ally Paul Atkins for SEC chairman. Many believe this could lead to a more favorable regulatory environment for Ripple and other digital assets.

“If the new SEC leadership opts for a compromise, it could send XRP soaring,” Guzman added.

A positive regulatory outcome for Ripple could position XRP among a select group of digital assets suitable for exchange-traded funds (ETFs). Bloomberg ETF expert Eric Balchunas predicts a surge in new crypto ETFs under new management, citing the record success of spot Bitcoin ETFs as a benchmark.

“XRP should be among the first to be approved,” Balchunas said, but cautioned that even with a positive regulatory outcome, crypto ETFs still face lengthy approval processes.

Beyond its legal challenges, Ripple is looking to a promising future with growing adoption of its new stablecoin, RLUSD. The company aims to strengthen its narrative as a legitimate payment solution, which Guzman believes could further strengthen XRP’s position.

Additionally, a resurgence of retail interest during the recent crypto rally has reignited investor enthusiasm for XRP. “Given the resurgent retail interest in XRP we saw in November and December, these positive developments could catalyze another wave of investor interest,” Guzman said.

*This is not investment advice.