XRP and Bitcoin Surge Amid SEC Changes: What You Need to Know!

SEC vs. Ripple Appeal on the Horizon

If the SEC files the opening brief, it would leave Trump’s nominated SEC Chair Paul Atkins to influence the SEC’s stance on the appeal. SEC Chair Gensler steps down on January 20, coinciding with Trump’s inauguration.
Amicus Curiae John E. Deaton reacted to Chair Gensler’s imminent departure, stating that 19 days was too long. Gensler could continue pursuing US crypto firms during his remaining days in office. Ripple experienced a similar fate in 2020 when the SEC filed its lawsuit just before Chair Jay Clayton stepped down.
However, there is a significant difference in 2025. The incoming SEC Chair is crypto-friendly and likely to end the SEC’s era of regulation through enforcement.
Markets are optimistic that the revamped SEC might align with Trump’s pro-crypto agenda, potentially concluding the Ripple case and other ongoing actions, such as those involving Coinbase (COIN).

Ripple's Wishlist for Clarity

On December 31, Ripple Chief Legal Officer Stuart Alderoty shared a wishlist for the US digital asset space, calling for clear regulatory principles, including:

• The SEC only has jurisdiction over security transactions.
• A token is never a security, although it can be the subject of a security transaction.
• The SEC’s reach doesn’t expand based on a self-serving view of who it thinks is more ‘deserving’ of disclosures.
• The notion that a token can ‘evolve’ from a security to a non-security is a made-up fallacy with no footing in the law.

Conflicts of Interest in Gensler’s SEC

Crypto-related conflicts of interest have marred Gary Gensler’s tenure as SEC Chair. Deaton summed up the impact of the SEC vs. Ripple case on Ripple’s business, saying,

“I do not believe one can properly estimate the damage to Ripple’s business caused by the sweeping nature of the SEC’s complaint against Ripple and XRP.”
Deaton also underscored the crypto-related conflicts of interest that led to an Office of Inspector General investigation.
“After 7 years of being publicly traded, this time four years ago, Jay Clayton, Bill Hinman, Mark Berger, and others at the SEC – as they were walking out the SEC’s door – filed the most significant non-fraud SEC enforcement action in modern history, claiming ALL XRP, regardless of how you acquired them, constituted unregistered securities.”

XRP Price Trends

On January 2, XRP advanced by 3.03%, following Wednesday’s 11.89% surge to close at $2.4004. XRP continued outperforming the broader market, which gained 2.42%.
Rising bets on the SEC withdrawing its Ripple appeal could support a return to $3. An actual withdrawal might send XRP through its 2018 all-time high of $3.5505.

Bitcoin and Speculation on US Strategic Reserves

Meanwhile, bitcoin (BTC) also trended higher on January 2. Speculation intensified about BTC becoming a US strategic reserve asset (SBR), boosting buyer demand.
Anthony Scaramucci suggested that the US government could soon buy 500,000 BTC.

“They’ll probably buy another four or five hundred thousand BTC. Let me tell you why I think it will happen.”
Scaramucci also referred to the SAB 21 bill, suggesting that the bipartisan vote for SAB 21 indicates that the majority of Democrats would favor a strategic BTC reserve.

Bitcoin Price Outlook

On January 2, BTC rose 2.60%, closing at $96,823.
Near-term BTC price trends depend on US-BTC-spot ETF market flows and US SBR developments. USG support for an SBR and BTC-spot ETF market inflows could drive BTC toward its record high of $108,231.