XRP Prices Rise On Trump Naming Mark Uyeda As Acting SEC Chief Who Wants To End 'War On Crypto'

Ripple's XRP prices increased to £2.56 ($3.14) at 7:25 a.m. ET on 21st January after momentarily retreating to £2.47 ($3.02) after US President Donald Trump named pro-crypto Mark Uyeda the acting chair of the Securities and Exchange Commission (SEC).

Uyeda will oversee the commission until Paul Atkins takes over permanently. The two have previously worked together and share a good relationship.

Uyeda Replaces Crypto Skeptic Gary Gensler

Yesterday, the SEC's acting chair replaced Gary Gensler, known for regularly clashing with Wall Street and the cryptocurrency industry.

Gensler initiated at least 83 crypto enforcement actions during his tenure, suing top firms like Coinbase and Kraken, alleging fraud and market manipulation.

The SEC didn't spare Ripple and sued the company in 2020, claiming that the company offered XRP as an unregistered security to raise funds from investors. The agency believed that Ripple sold XRP as a stock to grant investors ownership in the business, and this offering didn't pass the approval channels.

SEC's Enforcement Policies To Undergo Significant Changes

Several defendants highlighted that cryptocurrencies share more similarities to commodities than securities and urged the SEC to write new rules clarifying when a token can be classified as a security.

In the first days of the new Administration, Reuters reported that the SEC is expected to review crypto-related court cases and likely freeze litigation not involving fraud allegations, eventually withdrawing several of them. Uyeda will likely kickstart the initial stages of the rule-writing process as early as this week.

In November 2024, Uyeda said: "The Commission's war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm. President Trump and the American electorate have sent a clear message. Starting in 2025, the SEC's role is to carry out that mandate."

The growing optimism that the years-long legal battle between the SEC and Ripple will soon end has greatly boosted XRP prices.

Other Crucial Factors Lifting XRP Prices

Cooler-than-expected US Core CPI growth for December, combined with report leaks that the Trump Administration is considering a more expansive crypto reserve called the "America-first strategic reserve" to prioritise XRP, Solana, and USDC by Circle, are among the top factors driving XRP prices.

Trump also met Ripple CEO Brad Garlinghouse earlier this month. Garlinghouse described the meeting as a "great dinner" and a "strong start to 2025."

Furthermore, reports are emerging that the SEC could soon approve a Ripple exchange-traded fund (ETF) as Trump works to designate cryptocurrencies as a national "policy priority."

Ripple's president, Monica Long, had said that the Trump Administration team "will likely approve Ripple's spot ETF very quickly." Meanwhile, JPMorgan recently forecast that a Ripple ETF could attract cash inflows of up to £6.88 billion ($8.4 billion) within the first 12 months.

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