Ripple's native cryptocurrency XRP hit $3 shortly after reports surfaced that the incoming Trump administration's SEC may ease some digital asset lawsuits.
Ripple (XRP) soared more than 16% during U.S. trading hours on Wednesday, January 15, reaching $3 for the first time since 2018 following a rally across crypto markets.
According to data from the crypto analysis platform, XRP's market capitalization rose to $171.5 billion, solidifying Ripple's position as the third-largest digital asset by market capitalization. Bitcoin (BTC), with a market capitalization of $1.9 trillion, and Ethereum (ETH), with a market capitalization of $402 billion, remain the only large cryptocurrencies.
Why did Ripple's XRP soar?
Apart from the broader market recovery after this week's correction, news related to the incoming administration of Donald Trump may have contributed to the price spike.
The U.S. Securities and Exchange Commission may curb lawsuits against crypto businesses. President Trump reportedly plans to instruct new SEC leadership to reconsider lawsuits that do not involve fraud.
If true, regulators under President Trump's appointee Paul Atkins could suspend lawsuits involving companies like Coinbase and Ripple. Both companies were accused of selling unregistered securities, not outright fraud.
However, it remains unprecedented for a new SEC chairman to block a lawsuit brought by his predecessor. It's unclear how the incoming SEC leadership will address the ongoing litigation. Additionally, Atkins' appointment as SEC chairman still requires Senate confirmation.
