As Securities and Exchange Commission (SEC) Chairman Gary Gensler prepares to leave his post, a cryptocurrency targeted under his leadership is experiencing a remarkable rise.

Prominently used by fintech company Ripple Labs, the price of XRP banged Thursday as Gensler said he would resign from his leadership position at the agency when President-elect Donald Trump took control of the White House in January.

At the time of writing, the price of XRP has increased increased 20% over the past day, with the asset hitting its highest price since May 2021 at $1.49 earlier Friday.

Although XRP has been one of the largest cryptocurrencies by market capitalization since its launch in 2013, the SEC claimed that the asset is a security in a lawsuit filed in 2020. Even though a federal judge had since ruled that the token is “not necessarily a security on its face,” a sense of regulatory uncertainty remained among the SEC attractive the decision.

Bitwise Senior Investment Strategist Juan Leon shared Declutter that XRP’s price increase is rooted in hopes for a favorable regulatory environment under Trump. While the SEC has been pursuing Ripple Labs in court for years, a change in leadership could bring new opportunities depending on whether the SEC decides to drop the four-year lawsuit.

“Ripple Labs, and by extension XRP, has been embroiled in litigation with the SEC since 2020, which has severely hampered (their related) business prospects,” he said. “With Gensler underway and XRP’s stablecoin launching, investors are embracing a clear roadmap for XRP to fulfill its mission as a B2B blockchain payments network.”

On Election Day, the price of XRP hovered around $0.50. However, since Trump’s election victory, the cryptocurrency’s price has nearly tripled, making it one of crypto’s biggest post-election winners.

Ripple CEO Brad Garlinghouse has now given Trump’s camp advice New York Times. The newspaper reported last week that Garlinghouse spoke with people close to the president-elect about personnel decisions under Trump’s new administration.

With a change in SEC leadership likely to lead to a crypto-friendly regime, investor access to XRP has recently expanded in the US. For example, earlier this month the investing app Robinhood mentioned the token for trading on its platform.

Last month, Ripple’s Chief Legal Officer Stuart Alderoty said claimed Unpleasant Declutter that Gensler wanted to “keep a cloud of uncertainty over the industry” with his planned call. Still, he argued that the SEC’s appeal would likely fail, dispelling that cloud of uncertainty for good.

While the SEC sought a $2 billion fine against Ripple over XRP sales, alleging the company violated securities laws, a federal judge said ordered Ripple must pay a $125 million fine in August over XRP. The judge ruled that selling XRP to institutions violated securities laws, but not programmatic laws that made the token available to retail investors.

Connor McGlaughlin, a YouTube influencer and XRP investor who dedicated his Mickle Markets channel to boost the cryptocurrency, told Declutter that he believes the currency is on the rise as fears over its legal status diminish.

With the SEC’s lawsuit appearing more contentious than ever, McGlaughlin — who has posted pro-XRP videos about Gensler in recent days — sees renewed optimism among his fellow supporters.

“With the likelihood of a favorable resolution and the potential for a more crypto-friendly regulatory environment under a new administration, confidence in XRP is growing,” he said. “The market is waking up to this potential, driving the current excitement and price momentum.”

Edited by Andrew Hayward