XRP and Cardano Shine Post-Trump Election

Two digital assets in U.S. President Donald Trump’s proposed crypto reserve, XRP and Cardano (ADA), have performed exceptionally well since his election on November 5, showcasing increases of 375% and 163%, respectively. In contrast, Bitcoin has lost much of its post-election gains, and Ethereum and Solana have seen significant declines.

The rise of XRP and ADA has been attributed to a revamped regulatory climate thanks to a shift in leadership at the Securities and Exchange Commission (SEC), which is now under Acting Chair Mark T. Uyeda. The SEC has eased enforcement actions against several major crypto firms, notably Coinbase and Kraken.

Matt Hougan, Chief Investment Officer of Bitwise Asset Management, noted that under the previous SEC leadership of Gary Gensler, XRP and ADA faced severe regulatory threats. However, with the new commission, these threats appear to have diminished significantly.

The SEC had previously scrutinized every digital asset in Trump’s reserve, except Bitcoin. It filed lawsuits against Ripple Labs, claiming that XRP sales violated U.S. securities laws, and labeled Cardano and Solana as unregistered securities in lawsuits involving various exchanges.

Although the SEC’s lawsuit against Ripple remains ongoing, the abandonment of other high-profile cases raises expectations for a favorable resolution. The agency also withdrew its investigation into Robinhood’s crypto division.

As of now, Bitcoin is trading around $86,700, representing a 29% increase since November, yet still down from its all-time high above $108,000. Solana is priced at around $145, showing a 9.3% decline since November 5, while Ethereum has dropped 9.5% since Election Day.

Experts suggest that Trump’s mention of Cardano in his proposed reserve catalyzed its performance, while XRP’s rise is seen as a response to anticipated developments in Ripple’s legal battles. Geoff Kendrick, head of digital assets research at Standard Chartered, commented that Cardano had already begun losing gains before its mention by Trump.

In conclusion, XRP’s surge reflects a recovery related to the ongoing legal situation with the SEC, while Cardano’s rise is linked to its unexpected inclusion in Trump’s crypto reserve proposal.