XRP prices increase after Trump appoints Mark Uyeda as Acting SEC Chief
XRP prices surged to £2.56 ($3.14) at 7:25 a.m. ET on January 21st following the announcement of Mark Uyeda as the acting chair of the Securities and Exchange Commission (SEC) by US President Donald Trump. This price increase came after a brief dip to £2.47 ($3.02). Uyeda, who will serve as acting chair until Paul Atkins takes over permanently, has a positive working relationship with Atkins, having previously collaborated with him.
Uyeda’s appointment marks a significant shift from his predecessor Gary Gensler, who had a reputation for his adversarial stance towards Wall Street and the crypto industry. During his tenure, Gensler initiated numerous enforcement actions against prominent crypto firms like Coinbase and Kraken, alleging fraud and market manipulation. Ripple, too, faced legal challenges from the SEC under Gensler’s leadership, accused of offering XRP as an unregistered security to raise capital.
The SEC’s approach to crypto regulation is expected to undergo substantial changes under Uyeda’s leadership. There is speculation that the SEC will review existing crypto-related court cases and may halt litigation that doesn’t involve fraud accusations, with potential plans to withdraw some cases. Uyeda indicated a desire to shift the SEC’s focus away from pursuing enforcement actions solely based on registration failures without evidence of fraud or harm.
In a statement made in November 2024, Uyeda emphasized the need to end the Commission’s “war on crypto” and align its actions with the intentions of President Trump and the American public. His appointment has injected a sense of optimism into the crypto market, particularly regarding the resolution of the longstanding legal dispute between Ripple and the SEC, contributing to the rise in XRP prices.
Other factors boosting XRP prices include the revelation of a proposed “America-first strategic reserve” by the Trump Administration, aiming to prioritize cryptocurrencies like XRP, Solana, and USDC by Circle. Additionally, a meeting between Trump and Ripple CEO Brad Garlinghouse hinted at potential regulatory approvals that could benefit Ripple, such as the issuance of a Ripple exchange-traded fund (ETF).
Amid anticipation of regulatory developments, reports suggest that a Ripple ETF approval could lead to significant capital inflows, potentially reaching £6.88 billion ($8.4 billion) within the first year. While these speculations have driven optimism in the market, investors are reminded to conduct thorough analysis or seek professional advice before making investment decisions, considering the inherent risks of the market.
