Ripple's native cryptocurrency XRP reached $3 shortly after reports emerged that the incoming Trump administration's Securities and Exchange Commission may ease select lawsuits over digital assets.

ripple (XRP) rose more than 16% during US trading hours on Wednesday, January 15, reaching $3 for the first time since 2018 as the broader cryptocurrency market rose.

Data from cryptocurrency analytics platforms showed that the market capitalization of XRP rose to $171.5 billion, strengthening Ripple's position as the third largest digital asset by market capitalization. Bitcoin (Bitcoin), with a market value of $1.9 trillion, and Ethereum (Ethereum) at $402 billion, remains the only cryptocurrency larger.

Why did Ripple's XRP currency jump?

Aside from a broad market rebound following this week's correction, news regarding the incoming Donald Trump administration may have contributed to the price rally.

The US Securities and Exchange Commission may ease litigation procedures against cryptocurrency companies. Trump It is said It plans to direct the SEC's new leadership to reconsider lawsuits that do not involve fraud.

If this is true, the regulator, under Trump-nominated Paul Atkins could stop lawsuits involving companies like Coinbase and Ripple. Both companies were accused of selling unregistered securities rather than outright fraud.

However, it remains unprecedented for a new SEC chair to halt cases brought by his predecessor. It is unclear how the SEC's next leadership will handle the ongoing lawsuits. In addition, Atkins' appointment as Chairman of the SEC remains subject to Senate confirmation.