How Will Gary Gensler’s Resignation Affect the Crypto Market?

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed countless shifts and transformations. However, none have been as intriguing and potentially game-changing as the recent resignation of Gary Gensler from his position at the SEC.

As Bitcoin approaches $100k, there’s a lot of excitement within the cryptocurrency market about Gary Gensler’s resignation as SEC Chair. Investors have long viewed him unfavorably due to his repeated harsh measures against the crypto sector and his legal challenges towards numerous crypto service providers. This has kept many on edge and worried, with Binance US, Kraken, Coinbase, and others being targeted in lawsuits for allegedly operating as unregistered securities and clearinghouses.

There’s growing enthusiasm in the cryptocurrency sector as people’s concerns about its future seem to be easing with his resignation. Notably, this action also means he will no longer be able to champion his regulatory policies.

Crypto Enthusiasts Reacting to Gary Gensler’s Resignation

Over the past three days since Gary’s resignation announcement, there’s been a noticeable shift in the market trend towards optimism. This change could be attributed to the anticipation of a more crypto-friendly SEC chair, causing an influx of investors into the crypto market. As a result, several cryptocurrencies are moving closer to their all-time highs (ATH).

Users observed the record-breaking all-time high (ATH) of the global market cap at a staggering $3.35 trillion. Furthermore, the users’ sentiments surged into an ‘extreme greed’ phase. Consequently, numerous investors and crypto industry leaders flooded platform X to share memes and personal messages expressing their delight over this exciting news about Gary.

A Tribute To Gary Gensler:

Fuck You & Everything You Stand For

Sincerely,
The Entire XRP Army

— The Bearable Bull (@thebearablebull) November 22, 2024

Among recent events, Gary Gensler’s resignation appears to have brought optimism to XRP holders. This is due to the ongoing SEC vs. XRP lawsuit, which has had a significant impact on the Ripple token’s performance over the years. The announcement of his departure sparked a surge in the XRP price, reaching as high as $1.16 earlier today following a 49% increase over the week. Even Ripple’s CEO, Brad Garlinghouse, expressed enthusiasm for the future through a tweet reading “This Thanksgiving I’m thankful for” to reflect his positive outlook.

This Thanksgiving, I’m thankful for…

— Brad Garlinghouse (@bgarlinghouse) November 21, 2024

The effects can be seen across several assets such as Dogecoin and Cardano, with both experiencing double-digit increases and attracting further growth.

How Will It Affect the Crypto Market?

During Gary’s four-year term, the Securities and Exchange Commission (SEC) filed hundreds of enforcement actions against cryptocurrency service providers. In 2023 alone, they launched 104 such actions, with defense litigation fees amounting to $429 million. Exhausted by this trend, eighteen states have filed a lawsuit against the SEC for exceeding its constitutional bounds in regulating cryptocurrencies. As we move forward, experts predict that the number of these actions will decrease as the industry adopts more stringent crypto rules and regulations.

Since Donald Trump became the U.S. President, bulls have dominated the cryptocurrency market. The anticipated event was for Trump to dismiss Gary Cohn (former SEC Chair) and replace him with someone more favorable towards crypto. This change is now imminent. Consequently, the market has flourished, Bitcoin reached an all-time high, XRP soared to a three-year peak, and experts predict one of the largest cryptocurrency booms in history.

As Owen Lau, Oppenheimer’s Executive Director and Senior Analyst, I perceive Gary Gensler’s resignation as a significant shift in the regulatory landscape, transitioning from enforcing security laws to embracing the crypto sector on a global scale. I am optimistic about the potential outcomes, particularly with the appointment of a SEC chair who is more receptive towards cryptocurrencies under the administration of Donald Trump.

Several cryptocurrency experts anticipate a significant surge in the crypto market, with some predictions suggesting that the price of XRP could reach as high as $2. According to both Ali Martinez’s forecast and ChatGPT’s prediction, there is also a short-term expectation for the price to rise to approximately $1.96. However, both analysts also indicate that the price could potentially climb even higher in the long term.

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2024-11-23 16:44