XRP Surges Above $2 Amid SEC Commissioner Departure and Strong ETF Inflows
January 3, 2026 – By Shaurya Malwa
XRP, the digital asset associated with Ripple Labs, jumped over 8% to surpass the $2 mark on Friday, reaching its highest price since mid-December 2025. This notable surge outpaced Bitcoin (BTC) and several other leading cryptocurrencies, fueled by robust inflows into U.S. spot XRP ETFs and an increasingly optimistic regulatory environment following a key change at the U.S. Securities and Exchange Commission (SEC).
Strong ETF Demand Supports XRP Rally
Data tracked by market analytics firm SoSoValue revealed that U.S. spot XRP ETFs attracted $13.59 million in inflows on January 2 alone, bringing total investments since the product’s launch to $1.18 billion. The consistent demand from these funds has created favorable supply-demand dynamics for XRP, bolstering its price momentum even as major crypto benchmarks like Bitcoin and Ethereum exhibited relatively muted movements.
Currently, XRP is trading just above $2.00, up approximately 7.25%, while Bitcoin hovers near $90,000 and Ether (ETH) trades around $3,000, both displaying only modest gains on the day.
Regulatory Shifts Spark Optimism in Crypto Community
Investors and traders appear to be reassessing the regulatory outlook for cryptocurrencies in the wake of SEC Commissioner Caroline Crenshaw’s recent departure. Crenshaw had been known as one of the SEC’s most cautious voices toward cryptocurrencies, particularly expressing skepticism about approving spot crypto ETFs. She also opposed the SEC dropping its appeal in the ongoing Ripple litigation.
Her exit has been viewed by many market participants as potentially clearing the path for a more crypto-friendly regulatory stance, strengthening optimism around XRP and its broader market prospects.
Upcoming Legislation Adds to Positive Sentiment
Adding to the bullish momentum is market speculation surrounding impending regulatory developments. Traders pointed to an anticipated Market Structure Bill markup scheduled for January 15, 2026. This legislation is expected to clarify or reform key aspects of how digital assets are regulated in the United States, keeping policy expectations elevated into the first quarter.
Such legislative progress has reinforced the idea that XRP’s strength is supported by token-specific catalysts and regulatory optimism rather than a generalized market rally.
XRP Outperforms While Bitcoin Faces Mixed Flows
The bullish trend in XRP stands in contrast to mixed demand trends observed in other major cryptocurrency ETFs. Bitcoin funds reportedly saw weaker inflows over the same period, highlighting that XRP’s price performance has been driven largely by its unique market factors and regulatory dynamics connected to Ripple’s ecosystem.
Broader Crypto Market Context
While XRP leads with a strong performance to start the year, other segments of the crypto space have shown varied results. Notably, certain memecoins like Dogecoin (DOGE) and Pepe have experienced notable rallies, and trading volumes at exchanges like KuCoin have reached record levels in 2025, reflecting evolving market interests.
Summary:
- XRP price jumped above $2 for the first time since mid-December 2025, gaining over 8% on January 2.
- U.S. spot XRP ETFs saw inflows of $13.59 million in one day, with total inflows at $1.18 billion since launch.
- SEC Commissioner Caroline Crenshaw’s departure is perceived as paving the way for more crypto-friendly policies.
- Speculation around upcoming Market Structure Bill markup on January 15 adds to the positive regulatory outlook.
- XRP’s rally is driven by token-specific catalysts and steady ETF demand, contrasting with weaker flows in Bitcoin ETFs.
Investors will be watching closely how these regulatory and market dynamics unfold in the coming weeks, as they may significantly influence XRP’s trajectory and broader crypto market sentiment in 2026.