Ripple’s native cryptocurrency XRP hit $3 shortly after reports surfaced that the incoming Trump administration’s SEC may ease select digital asset lawsuits.

Ripple (XRP) surged over 16% during U.S. trading hours on Wednesday, Jan. 15, reaching $3 for the first time since 2018 as the broader crypto market rallied.

Data from crypto analytics platforms showed XRP’s market capitalization climbed to $171.5 billion, solidifying Ripple’s position as the third-largest digital asset by market cap. Bitcoin (BTC), with a market cap of $1.9 trillion, and Ethereum (ETH) at $402 billion remain the only larger cryptocurrencies.

Why did Ripple’s XRP jump?

Aside from a broad market recovery following this week’s correction, news related to Donald Trump’s incoming administration may have contributed to the price surge.

The U.S. Securities and Exchange Commission may temper litigation action against crypto businesses. Trump reportedly plans to direct new SEC leadership to reconsider lawsuits that do not involve fraud.

If true, the regulator, under Trump-nominated Paul Atkins, could pause court actions involving companies like Coinbase and Ripple. Both firms were accused of selling unregistered securities rather than outright fraud.

However, it remains unprecedented for a new SEC chair to halt cases initiated by a predecessor. It’s unclear how the incoming SEC leadership will handle ongoing lawsuits. Additionally, Atkins’s appointment as SEC chair is still subject to Senate approval.