Mark Uyeda Appointed as Acting SEC Chair, XRP (XRP) Price Rally Signals Optimism in Crypto Markets

The appointment of pro-crypto Uyeda is expected to mark a significant shift in the SEC's stance on cryptocurrency regulation

The appointment of Mark Uyeda as acting Chair of the Securities and Exchange Commission (SEC) has brought renewed optimism to the crypto markets, especially in light of Ripple's ongoing legal battle with the agency over the classification of XRP sales.

Uyeda, a pro-crypto appointee, has been critical of the SEC's previous enforcement-driven approach toward digital assets. In a recent statement, he remarked, “The Commission’s war on crypto must end.” His appointment comes as former SEC Chair Gary Gensler resigned amidst increased heat on how the SEC handles crypto-related cases.

This appointment, which is expected to put an end to the SEC's appeal and ultimately lead to a favorable verdict for Ripple, has instilled bullish sentiment into XRP, which has been at the center of regulatory discussions since the SEC filed a lawsuit against Ripple Labs in December 2020.

Several key developments have taken place in Ripple's case with the SEC over the past year. In August 2024, Judge Analisa Torres ruled that XRP sales to institutional investors violated securities laws but dismissed allegations of fraud or recklessness. Ripple was ordered to pay $125 million in penalties, a fraction of the $1 billion initially sought by the SEC.

The SEC filed an appeal earlier this month, arguing that the classification of XRP's programmatic sales as non-securities should be overturned. However, Uyeda's leadership might signal a shift toward a more collaborative regulatory approach, potentially leading to a resolution in Ripple's favor.

Meanwhile, XRP's price rallied to $3.10 on Monday, partially recovering from Sunday's 9.55% decline. Increased on-chain activity and whale transactions contributed to the uptick, as Santiment data showed a spike in large-scale XRP purchases. Despite a temporary dip in derivatives market open interest, funding rates for XRP futures reached a six-week high of 0.0143%, reflecting growing confidence among traders.

Technical indicators point to further bullish momentum for XRP. If it holds above its key support level at $2.90, analysts project that XRP could breach its previous all-time high of $3.55 and climb to $4.22, a target derived from the height of the recent bullish flag pattern on the 8-hour chart.

However, a break below $2.90 could trigger a retracement to $2.60, aligning with the 23.6% Fibonacci retracement level and the 50-day Simple Moving Average (SMA).

Discussion

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Uyeda's appointment has also sparked broader discussions on regulatory reforms. President Trump's pro-crypto stance, evident in Uyeda's selection, has been viewed as a step toward fostering innovation in the digital asset space.

Industry experts believe this could pave the way for approval of spot XRP ETFs, which analysts at Standard Chartered estimate could attract $4.3 billion to $8.4 billion in inflows within a year of launch.

Furthermore, Uyeda's leadership may encourage the SEC to revisit other contentious regulatory policies, such as its strict stance on crypto custody and reporting requirements for financial institutions.

This is another indication that hope for Ripple's XRP is on the horizon, though regulatory uncertainty continues to drag the company's shares down. Challenges remain ahead, but Mark Uyeda, appointed acting SEC Chair, shows a pro-crypto approach, which may reshape the future of cryptocurrency in the United States by enabling regulators and blockchain companies to present a more constructive dialogue.