Is Ripple closer to winning the lawsuit against SEC as Chair Gensler faces potential dismissal?

Ripple has been fighting the Securities and Exchange Commission (SEC) for quite some time now. The long-running court case is about to come to a conclusion, and given the recent testimony from SEC Chair Gary Gensler, it seems like the scales will be tipped in favor of XRP.

Ripple and XRP enthusiasts predict their win

Over the course of the testimony in front of Congress on April 18, SEC Chair Gary Gensler faced questions discussing the recent events of the crypto market. Although he attempted to address some of the questions, he evaded others, and the majority of them seemed to have left him at a loss for words.

One of the biggest questions of the day was whether Ethereum (ETH) was a security or not. Despite being asked the same question multiple times by Congressman Patrick McHenry, Gensler failed to provide a yes or no. 

Furthermore, the regulatory body's Chair took a swing at the crypto market by claiming that the Silicon Valley Bank failure was caused by the crypto market. He also admitted that despite being the SEC Chair and having taught about blockchain technology and Bitcoin at the Massachusetts Institute of Technology (MIT), he did not own any crypto at all.

The crypto community saw all these as signs of an unfit SEC Chair, and not so surprisingly, the sentiment was shared by Congressman Warren Davidson as well. Consequently, Davidson introduced legislation in Congress that proposed the dismissal of Gary Gensler from the SEC as the Chair.

Soon after, "Judge Torres" started trending on Twitter as users began calling on her to provide a ruling soon, preferably in favor of Ripple. The growing uncertainty of the case has put pressure on Ripple as well, given the company dropped XRP from its Liquidity Hub, citing lack of regulatory clarity as its reason.

In light of the recent events, now seems like the perfect time for a ruling on the Ripple vs. SEC lawsuit, and if the crypto company wins, it would be proof that Gary Gensler's exit may be necessary.

Will Gensler's exit be a boon to the market?

While nothing is certain at the moment, Gensler being kicked off SEC could be bullish for the crypto market. Firstly, since SEC's methods are being scrutinized, It’s "regulation by enforcement" tactic, which has been criticized for a long time, could come to an end. 

This could, in return, result in crypto companies that exited or are talking about exiting the United States to stay or return. Over the last couple of months, NEXO, a crypto lending platform, moved its operations out of the US to the Middle East even before receiving a cease and desist letter from the authorities.

Recently, the world's second-largest and America's biggest cryptocurrency exchange, Coinbase, also stated that it is considering moving away from the States. Its CEO Brian Armstrong noted,

"I think the US has the potential to be an important market for crypto, but right now we are not seeing that regulatory clarity that we need. I think in a number of years if we don't see that regulatory clarity emerge in the US we may have to consider investing more elsewhere in the world."

A ruling in favor of Ripple and Gensler's departure could lead to not only an increase in the value of XRP but also a bullish trend across the entire cryptocurrency market.