XRP, the digital asset associated with Ripple, has soared to its highest value of 2024, driven by expectations of a favorable regulatory environment in the U.S. following Donald Trump’s election victory. On December 1, XRP briefly surpassed Solana and Tether’s USDT in market capitalization, reaching $2.46 before stabilizing around $2.29.

Investors anticipate that the Trump administration could lead to reduced regulatory pressure, particularly concerning the Securities and Exchange Commission’s (SEC) lawsuit against Ripple. Initiated in 2020, the SEC accused Ripple of selling unregistered securities through XRP. Industry leaders, including Consensys CEO Joe Lubin and former Commodity Futures Trading Commission Chair Chris Giancarlo, suggest that cases like Ripple’s might be settled or dismissed, potentially saving the industry millions in legal costs.

Additionally, XRP’s rise is linked to Ripple’s forthcoming RLUSD stablecoin project. Reports indicate that the New York Department of Financial Services (NYDFS) may soon approve the over-collateralized stablecoin, with a product launch anticipated in early December. This development is expected to enhance Ripple’s cross-border payment solutions, further boosting investor confidence.

Speculation about a meeting between Ripple CEO Brad Garlinghouse and Trump has also fueled optimism. The broader crypto market has rallied since Trump’s victory, with Bitcoin reaching an all-time high of $99,645 on November 22. This bullish sentiment suggests that XRP’s momentum could continue as regulatory clarity improves.