The U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler will step down from his position on January 20, 2025, the same day as Donald Trump's inauguration. After Trump's confirmation to the White House, the SEC-labeled unregistered securities, cryptocurrencies, are rapidly rising.
(SEC Chair Gary Gensler to Step Down on Trump's Inauguration Day, Who Are the Top Contenders?)
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ToggleSOL, XRP, ADA Outperform BTC After the Election
Although the largest digital asset Bitcoin is considered a commodity, the SEC under Gensler's leadership believes that most other tokens are unregistered securities and should be subject to its regulation. The industry expects that this suppressive behavior will gradually disappear under the Trump administration as regulations become clearer.
After Gensler's resignation statement last Friday, the token XRP related to Ripple Labs surged 20% in a single day. Ripple has been embroiled in a protracted legal dispute with the SEC over the status of digital assets.
The ADA token associated with the Cardano blockchain rose 12%, while the rise of Solana's SOL token broke its all-time high since 2021.
Since the U.S. election on 11/4, BTC has risen 45%, SOL 58%, XRP 192%, and ADA even higher at 211%.
FOMO Sentiment Will Drive the Rise of Altcoins
According to Bloomberg, some market participants expect that as speculative enthusiasm increases, people will shift their focus to smaller altcoins, not just Bitcoin. Nick Forster, founder of Derive.xyz, said: "This is certainly consistent with previous cycles." He cited the demand for SOL call options as an example.
Bitcoin is approaching the milestone level of $100,000, and price skeptics doubt whether this barrier can be smoothly broken through. The momentum of Trump's victory and the strong demand for Bitcoin exchange-traded funds have driven Bitcoin to rise 135% this year.
(Bitcoin Failed to Break 100K: BTC 97K, SOL Hits New High, ETH Peak Still 3 Years Ago)
Hayden Hughes, head of crypto investments at family office Evergreen Growth, said:
I expect Bitcoin to take a breather, allowing other tokens to catch up.
Trump has vowed to establish a supportive U.S. cryptocurrency regulatory framework. Trump was once a cryptocurrency skeptic, but his attitude has changed after crypto companies invested heavily in his campaign. He also has his own Non-Fungible Token and crypto projects.
