With Trump being elected as the President of the United States, his promise to replace the SEC chairman will be implemented in advance on his first day in office. Last week, SEC Chairman Gary Gensler officially announced that he would step down on January 20, 2025, which is around the time Trump takes office. After the news was released, sentiment in the crypto market was boosted, causing XRP, ADA and other "SEC security coins" that have long been under regulatory pressure from the SEC to surge by nearly 30% in a short period of time.

During his tenure, he was regarded as the number one opponent in the currency circle

Gary Gensler has adopted a strict regulatory attitude towards the cryptocurrency industry since he became the chairman of the SEC. He has repeatedly emphasized that BTC is the only commodity currency, while other cryptocurrencies are mostly regarded as securities. This stance has attracted a lot of controversy and criticism for him. During his tenure, Gensler took enforcement actions against Coinbase, Kraken, Robinhood, OpenSea, Uniswap, MetaMask and other entities. He completed thousands of enforcement cases and recovered approximately US$21 billion in fines. He is regarded as a leader in the currency circle. The number one opponent. Previously, the attorneys general of 18 states in the United States even jointly filed a lawsuit against the SEC and its five commissioners, accusing the SEC of unconstitutionally excessive expansion of powers and unfair suppression of the cryptocurrency industry under the leadership of Gary Gensler.

However, despite Gensler’s tough stance on cryptocurrencies, he successively approved spot ETFs for Bitcoin and Ethereum during his tenure, which undoubtedly gave a boost to the development of encryption. This seemingly contradictory behavior is actually based on a common logic, which is to incorporate cryptocurrency into the US regulatory framework, which is also Biden's main policy philosophy.

SEC Securities Coin Pressure Relief

Gary Gensler’s ouster not only relieved many investors and crypto companies who had headaches due to regulatory pressure, but also brought hope to tokens that have been greatly affected by the SEC. The most obvious one is Ripple, the top “SEC security coin”.

As early as December 2020, the US SEC began to accuse Ripple of illegally issuing unregistered securities. Many platforms such as Coinbase Robinhood were even temporarily removed from the shelves, causing the price of XRP to suffer a heavy blow. At this point, the lawsuit between the SEC and Ripple has officially begun, which has also attracted widespread attention in the encryption market. Is cryptocurrency a security? Whether it is regulated by the Securities Regulatory Commission has been controversial, so the final judgment of this case will have a major impact on the development of the entire cryptocurrency circle.

Every time there is news about XRP, there will be huge fluctuations, which will also affect the prices of some altcoins that are also accused of being securities by the SEC, such as ADA, MATIC, SOL, FIL, etc. With dozens of projects, “SEC Securities Coin” has become a special section.

Now, with the SEC ChairmanAfter his resignation, Ripple, which had a lengthy lawsuit with the SEC, turned into the "SEC Revenge" concept currency and ushered in a retaliatory rise. Other tokens that have long been under regulatory pressure from the SEC, such as ADA, SOL, etc., also experienced similar gains.

Which cryptocurrency companies targeted by the SEC are expected to benefit?

At present, Trump has not officially announced his preferred candidate for the new chairman of the SEC. However, several popular candidates are friendly to cryptocurrencies and have publicly expressed their support for cryptocurrencies. With crypto-friendliness, it is expected that the SEC will be crypto-friendly in the future. Enforcement will be significantly scaled back, and some staff members within the SEC who have engaged in aggressive enforcement may be liquidated.

This means that for "SEC security coins" like Ripple, which were previously suppressed and sued by the SEC, the lawsuits may be softened, settled or even withdrawn, and some people are afraid of issuing tokens or for tokens because they are afraid of the SEC. Empowered project parties may also become the biggest direct beneficiaries. In addition, they are also expected to promote Ethereum staking services, such as spot ETH ETFs that can provide staking rewards, etc., thus increasing the price of Ether. Below are a few representative projects that may directly benefit.

1. XRP: The regulatory haze has dissipated, and market performance is expected The plan has not really been implemented. We are currently trying to expand and transform the TOC business and introduce smart contract functions to Ripple by supporting some side chain projects.

Due to business positioning, the data performance of XRP on the market side is not very good. However, it has a large user base and fan base, as well as relatively advantageous background resources. XRP's historical accumulation and brand effect are its biggest highlights and leveraging points, and it still has considerable potential in the prosperous industry ecosystem. This gives it a great opportunity to easily leverage the market in terms of TOC and achieve better market capitalization performance. If XRP can achieve certain results on the TOC route, it will have a greater increase in the project's market value and TOB business, and its officials will also have ample funds and space to expand TOB's cross-border settlement business.

This time, Gensler’s resignation caused XRP’s rise not only to be driven by emotions, but also as a reaction to multiple market expectations. First, XRP may be relisted by more exchanges to expand its market liquidity. For example, Robinhood relisted Ripple (XRP) for trading on November 13. Secondly, Ripple’s business operations will focus more on core technology rather than legal battles. Previously, Ripple has been fully engaged in the lawsuit since the SEC filed a lawsuit against it. In the second half of 2023, Ripple CEO said that the company had paid more than $200 million in legal fees.

In addition, it is worth noting that there are currently 21Shares, BiSeveral ETF issuers such as twise have submitted applications to the SEC to launch XRP spot ETFs. This development further highlights the market's positive expectations for the future development of XRP.

2. ADA: Greater flexibility under the whale effect

As a project born in 2017, Cardano’s native token ADA has always been regarded as an innovative platform with technical robustness and academic drive as its core, providing People feel that it is "stable". It is relatively low-key but has huge potential. It has been among the top ten in the crypto market value rankings all year round. As an established public chain, Cardano's current ecology is relatively average compared with several well-known public chains on the market, so that in the eyes of many insiders, it is a "demon coin". The phenomenon of a large gap between market value and project development is related to the centralization of ADA tokens and the control of giant whales.

According to statistics from stakingrewards.com, Cardano (ADA) is the fourth-largest cryptocurrency in terms of total pledge value. The total value of ADA pledges on its network is nearly US$21 billion, and the pledge rate is as high as over 61%. This shows that ADA has carried out centralized lock-up and controlled the market circulation to a certain extent.

In addition, according to data from the blockchain analysis platform IntoTheBlock, 72% of ADA currency-holding addresses have not transferred funds for more than a year, and currently as many as 67% of currency holders It is profitable at the current market price, which shows that its investor base is mainly long-term holdings. The existence of this "belief layer" provides stable support for ADA prices and also shows the market's optimistic expectations for its future growth.

From the data point of view, nearly half of Cardano’s circulating supply is controlled by about 400 addresses. This concentrated distribution of tokens has weakened market liquidity to a certain extent. This makes the price of ADA more susceptible to large capital inflows. It also shows the whale’s confidence and interest in the price increase of ADA.

ADA currency holding address

The current encryption market continues to be strong, investors’ risk appetite is increasing, and sectors are rotating Clearly, altcoins are compensating for gains. Although Cardano's current ecological performance still needs to be improved, as a well-known established public chain, its high pledge rate and whale holding ratio give the price greater flexibility and room for growth.

3. Uniswap: Empowerment and Acceleration

As the leader of DEX, Uniswap is a rare project with sustainable high profitability in the encryption industry. However, due to long-term regulatory pressure, the issue of empowerment of UNI tokens has been unresolved. In February of this year, the Uniswap Foundation released a proposal to "launch Uniswap protocol governance", proposing that protocol fees be proportionally distributed to UNI token holders who pledge and delegate voting rights.As soon as the news was released, it quickly aroused market enthusiasm, and the price of UNI soared from US$7 to around US$12 overnight. However, until May, this fee allocation mechanism had not yet been implemented.

In April this year, the SEC issued a warning to Uniswap Labs and planned to take enforcement action against it. This incident caused a certain blow to market sentiment, and UNI's market performance has since become flat. Until October this year, Uniswap Labs announced plans to launch the Unichain chain. This move injected new imagination into the Uniswap ecosystem and made the empowerment issue of UNI tokens once again the focus of the market.

Now, with the departure of the SEC Chairman, the market is highly optimistic about the loosening of the regulatory environment in the future. In this context, the relief of regulatory pressure has released more potential for decentralized platforms, and at the same time provided good conditions for the expansion of the Uniswap ecosystem, helping the UNI token to gradually transform from a single governance token to one that combines governance, A core asset with multiple functions such as revenue capture and ecological empowerment. How this transformation will further empower UNI token holders through the fee distribution mechanism and the implementation of Unichain deserves the market’s continued attention and expectations.

4. Base: Expectations for currency issuance have increased

Since Base, the second-layer Ethereum protocol incubated by Coinbase, was officially launched in August last year, community members have been paying attention to and looking forward to the issuance of Base tokens. At that time, Coinbase It has been made clear that there are currently no plans to issue tokens. At that time, because the lawsuit between Coinbase and the SEC had not yet ended, the strategy of not issuing coins may also help Coinbase avoid regulatory minefields under the pressure of litigation. When asked about the coin issuance plan by the community recently, Coinbase's chief legal officer once again reiterated that there is no plan to issue coins, but said that issuing tokens is a feasible solution in the future when supervision is clear, and said that Base would not rule out launching tokens in the future. currency.

It is worth noting that ConsenSys, the parent company of MetaMask, which is also under investigation by the SEC, was also widely rumored by the community to cancel or postpone its Layer 2 protocol Linea’s token plan due to regulatory pressure. Hot discussion. After Trump won the election, ConsenSys expressed optimism about token issuance under a more relaxed regulatory environment, and announced at the Devcon conference in Bangkok that it would issue tokens in Q1 next year, which also indirectly fueled the market's response to Base's token issuance. expectations.

According to defillama data, Base currently ranks 6th in the total value locked (TVL) of the DeFi protocol, with total deposits of up to 3.3 billion US dollars, second only to the EVM chain. ETH and BSC. As the regulatory environment relaxes and the Base chain ecology continues to mature, whether tokens will be issued in the future, as well as the specific design of the tokens, will be the focus of the market.

Currently, TrumpThe "cabinet formation" is basically completed, and many of the ministers nominated have expressed support for cryptocurrency, showing the huge influence of cryptocurrency in the United States. Market optimism is also growing for the future development of the encryption industry. As the official partner of the Argentina team, 4E supports spot and contract transactions of more than 200 crypto assets such as Bitcoin, Ethereum, SOL, XRP, ADA, etc., covering various sectors such as "SEC Securities Coin", Meme, DeFi, etc., with high liquidity and low fees. rate is low.

At the same time, 4E also integrates traditional financial assets into the platform, establishing a comprehensive one-stop service covering everything from deposits to crypto assets to US stocks, indices, foreign exchange, and bulk gold. A trading system with more than 600 assets of different risk levels, you can invest with one click at any time by holding USDT. In addition, the 4E platform has a risk protection fund of US$100 million to provide another layer of protection for users’ financial security. With the help of 4E, investors can keep up with market dynamics, flexibly adjust strategies and capital allocation, and seize every potential opportunity.