How Could XRP & XLM Price React If SEC & CFTC Merge?

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As a seasoned crypto investor with more than a decade of experience under my belt, I’ve seen the rollercoaster ride that is the cryptocurrency market. The recent developments in the US regulatory landscape have filled me with a renewed sense of optimism and excitement. With Donald Trump’s re-election and his pro-crypto stance, we are witnessing a shift in the winds that could potentially bring much-needed clarity to the crypto industry.

Following Donald Trump’s victory, optimism about cryptocurrency regulations and favorable policies has risen significantly. The re-elected President has started making moves, and his choices suggest a crypto-friendly stance, which is quite an accomplishment for crypto investors. In this context, the most significant achievement in the crypto world is Gary Gensler’s impending resignation as SEC Chair. Notably, the idea of merging the SEC and CFTC has resurfaced, with the intention of benefiting the industry. This potential merge could influence the prices of XRP and XLM due to XRP’s strained relationship with the Security and Exchange Commission.

John E. Deaton Urges For SEC & CFTC Merge

Discussions about merging the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) have been ongoing for quite some time. Approximately three months ago, a bill for this merger was introduced in Congress by Representative John Rose. Recently, well-known crypto advocate John E. Deaton has also voiced his support for the merger, emphasizing the importance of streamlined regulation that minimizes confusion and conflicts between these regulatory bodies.

As an analyst, I must commend the excellent discussion hosted by @PerianneDC on @MorningsMaria with @MariaBartiromo. The insightful conversation revolved around the possibility that @elonmusk and @VivekGRamaswamy, through their association with @DOGE, are considering a proposal to merge the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

A compelling argument exists for unifying these two organizations, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Combining them would streamline regulations by eliminating overlapping responsibilities.

— John E Deaton (@JohnEDeaton1) December 13, 2024

It could bring better guidelines and position the US on the same level as many nations with only one financial regulator. Eventually, he called it the ‘Gray Zone of Crypto,’ which creates complexities between the SEC and CFTC.

It’s worth noting that several influential figures in the industry, such as Elon Musk, Vivek Ramaswamy, and Donald Trump, have expressed their support for this concept. Furthermore, it seems that Trump intends to allow the Commodity Futures Trading Commission (CFTC) to oversee the crypto market, an organization which currently regulates the U.S. derivatives market and commodities like gold and others.

How Will XRP and XLM Price React?

Similar to numerous crypto supporters, John has been vocal in his criticism towards Gary Gensler and the SEC, with some experts suggesting their presence has impeded the development of cryptocurrencies. Previous reports from CoinGape on the Ripple SEC Case disclosed that the Commodity Futures Trading Commission (CFTC) has brought over 120 lawsuits against crypto service providers like Ripple, Binance, Kraken, and others.

The most significant effect was observed on the XRP market value, which plummeted and stabilized over a three-year period. XLM’s price trend closely mirrored this, largely due to the SEC’s tough actions against Ripple. It’s worth noting that American cryptocurrency users have faced significant hardships as they were restricted from numerous crypto transactions and token sales.

Following three years of continuous battles, optimism surged for the Ripple token as its price bounced back from a period of stagnation and reached a six-year peak of $2.84 at the start of this month. Simultaneously, XLM prices also achieved record highs. Additionally, experts anticipate that Gary Gensler’s departure and the launch of RLUSD stablecoin could potentially propel the XRP price to unprecedented levels of prosperity.

XRP Price to Hit $15 & XLM Price to $5

Following Donald Trump’s election win, the price of Ripple token revived, hitting a six-year peak at $2.43 and boasting a market capitalization of $138.81 billion. Several other factors contribute to this token’s potential growth, with experts predicting the XRP price could surge between $15 and $20. These factors include Gary Gensler’s departure from office and the recent merger of SEC and CFTC. This proposed merge could significantly impact XRP, as it has faced challenges due to the SEC’s stance on the token.

Concurrently, the Stellar Lumens (XLM) price might reach $5, mirroring the price trend of Ripple (XRP), even though they are rivals. Interestingly, they share the same founders, who seem to be maintaining this correlation. At present, the XLM price stands at $0.4296, with its all-time high (ATH) being 53% higher over the past seven years if compared. If Ripple’s token experiences a surge, it could potentially propel Stellar’s token to reach $5.

What’s In There For You With SEC & CFTC Merge?

The proposed idea of combining the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) faces numerous technical challenges such as budgeting issues, staffing concerns, and more. Yet, if it were to occur, it could potentially trigger a surge in the prices of XRP and XLM. Furthermore, such a merger might mark a significant stride towards regulating cryptocurrencies, streamlining operations for service providers by minimizing legal complications, expenses, and energy consumption.

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2024-12-14 16:58