Mark Uyeda becomes SEC chair: could Ripple’s lawsuit see a breakthrough?

Mark Uyeda’s appointment as the new chairman of the Securities and Exchange Commission (SEC) marks a pivotal moment for the regulatory landscape of cryptocurrencies in the US. As Gary Gensler steps down, his successor inherits a challenging portfolio, including the highly contentious lawsuit against Ripple Labs over the classification of XRP as a security. Uyeda, known for his pro-crypto stance, has long criticised the SEC’s rigid approach under Gensler. This transition comes at a time when the market seeks clarity and innovation in the crypto space, potentially setting the stage for transformative changes in regulatory policies. Ripple’s lawsuit under a new SEC administration Ripple Labs has been embroiled in a legal battle with the SEC since 2020, a case that significantly impacted XRP’s market trajectory and regulatory perception. The lawsuit, centred on whether XRP is a security, saw the SEC adopt an aggressive stance, deterring innovation and creating uncertainty in the crypto industry. Mark Uyeda’s leadership introduces hope for a more balanced regulatory environment. His prior statements advocating for regulatory clarity could lead to reconsideration of Ripple’s case, paving the way for a potential settlement or revised guidelines that benefit both investors and developers. Uyeda’s role may also influence the broader cryptocurrency ecosystem, signalling a shift in how the SEC approaches enforcement actions. This could reduce legal ambiguity for crypto projects, fostering greater confidence among stakeholders and encouraging innovation in the blockchain sector. XRP’s market performance signals optimism XRP’s recent market activity reflects a bullish sentiment, driven by speculation around potential changes in regulatory oversight. In the past 30 days, XRP has outperformed major cryptocurrencies, with a growth of 36%, highlighting investor optimism. On January 16, XRP reached a peak of $3.4021 before stabilising at $3.1013, maintaining strong momentum despite market volatility. Source: CoinMarketCap This performance coincides with increased whale activity, as significant investors accumulated over 100 million XRP in just two days. Such movements indicate heightened confidence in XRP’s future, fuelled by expectations of more favourable regulatory conditions under Uyeda. The road ahead One of the most anticipated outcomes of Uyeda’s tenure is the potential approval of XRP exchange-traded funds (ETFs). Market participants argue that the absence of such instruments limits investor access and mainstream adoption. The new SEC chair’s pro-crypto perspective could expedite ETF approvals, unlocking new growth avenues for Ripple and strengthening XRP’s position in the global market. Moreover, analysts predict that XRP could reach $4.33 by April 2025 if current trends persist. With at least 60% green trading days in the last month, the token exhibits a robust bullish pattern, suggesting sustained upward momentum. Achieving these milestones will depend on both regulatory developments and Ripple’s ability to leverage its blockchain infrastructure to attract institutional partners. The post Mark Uyeda becomes SEC chair: could Ripple's lawsuit see a breakthrough? appeared first on Invezz