XRP News Today: Will Acting SEC Chair Uyeda End Ripple Case? BTC Falls Back to $102K

Trump Names Mark Uyeda Acting SEC Chair Supporting Crypto Agenda

On Monday, January 21, President-elect Donald Trump continued his pro-crypto agenda, naming Commissioner Mark Uyeda as acting SEC Chair. Acting Chair Uyeda takes over from former Chair Gensler and will lead the agency during Paul Atkins’ confirmation process. The announcement could be a pivotal moment for Ripple and XRP.

Trump could choose from Republican Commissioners Uyeda or Hester Peirce, known for their crypto-friendly stances. Trump’s selection of Atkins as Chair solidifies a pro-crypto agenda for the Republican-led SEC.

Acting Chair Uyeda was under consideration for the agency’s top position before Trump nominated former Commissioner Paul Atkins as Chair. There could be a significant shift in the SEC’s enforcement policies from day one.

In November, Acting chair Uyeda shared his views on the SEC’s regulation through enforcement policy, saying,

“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.”

Acting Chair Uyeda could kick start the SEC’s change in crypto strategy as early as Thursday, January 23, at the SEC’s next Closed Meeting. The Ripple case will likely be among the enforcement actions that are up for review.

Acting Chair Uyeda and SEC Commissioner Peirce must decide whether to withdraw or pause the Ripple case. Last week, there were reports that the acting SEC Chair may review and request stays or end non-fraud-related crypto cases.

SEC vs. Ripple Case: No Fraud or Recklessness

The Ripple case meets the criteria of a non-fraud case. In August 2024, Judge Torres delivered the Final Judgment and a blow to the SEC. Notably, Judge Torres denied the SEC’s request for disgorgement and prejudgment interest in excess of $1 billion.

Judge Torres imposed a $125 million penalty for illegally selling XRP to institutional investors, well below the SEC’s claim for $876 million Importantly, Judge Torres based the penalty on a tier-one civil violation of the US Securities Act, with no allegations of fraud or recklessness.

The SEC vs. Ripple case is likely the highest profile case and in President Trump’s sights. Former SEC Chair Gary Gensler filed an appeal-related opening brief on January 15, challenging the Programmatic Sales of XRP ruling. Pausing the case may align with Trump’s pro-crypto stance, but pursuing the appeal risks contradicting this narrative.

XRP Price Trends Amid Legal Uncertainty

On Monday, January 20, XRP rallied 4.95%, partially reversing Sunday’s 9.55% tumble to close at $3.1013. The token outperformed the broader crypto market, which advanced by 1.06%, taking the total market cap to $3.46 trillion.

Near-term trends remain hinged on the SEC’s appeal strategy. If the agency pauses or withdraws its appeal in the Ripple case, XRP could break above its all-time high of $3.5505. Conversely, XRP could drop below $2.5 if the SEC pursues its appeal, challenging the Programmatic Sales ruling.

Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.

Bitcoin Sees Volatility as Trump’s Crypto Stance Unfolds

Meanwhile, bitcoin (BTC) enjoyed a pre-Trump inauguration rally on speculation of pro-crypto executive orders.

However, BTC gave up early gains as President Trump’s America First Priorities skipped crypto altogether. Markets had hoped for an executive order classifying BTC as a US Strategic Bitcoin Reserve (SBR).

In January, Anthony Scaramucci said the incoming Trump administration could acquire 500,000 BTC, stating the Senate Banking Committee Chair, Tim Scott, and Treasury Secretary Scott Bessent advocate an SBR.

Trump’s crypto silence weighed market expectations of a US SBR. According to Polymarket, bets on President Trump creating a BTC reserve within the first 100 days tumbled 20% on Monday to 39%. On November 7, 60% of betters had expected President Trump to create a BTC reserve in his first 100 days.

There was also speculation President Trump would repeal Joe Biden’s veto President Biden’s veto of the bipartisan vote to withdraw the SEC’s Staff Accounting Bulletin 121 (SAB 121).

SAB 121 is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. This regulation increases the cost for banks to hold crypto for clients. Consequently, it limits the availability of crypto services. A repeal could also boost BTC-related banking services and demand.

Markets Remain Hopeful for an SBR

Despite Trump’s lack of crypto attention, markets remain optimistic about a US SBR. Senator Cynthia Lummis continues advocating for an SBR. Notably, the Senator introduced the Bitcoin Act in December. The bill proposes the US government accumulate one million BTC (5% of the total supply) over five years, with a minimum mandatory holding period of 20 years.

A bipartisan vote in favor of an SBR would tilt BTC’s supply-demand balance heavily in its favor. Amicus Curiae attorney John E. Deaton recently speculated that BTC could climb to $1 million if the US government passes the Bitcoin Act, attributing his projection to a “Nation State FOMO.”

Bitcoin Price Outlook

On Monday, January 20, BTC gained 0.96%, partially reversing Sunday’s 2.07% loss to close at $102,408. Significantly, BTC climbed to a record high of $109,350 before retreating.

BTC’s price trends hinge on Trump’s executive orders and plans for an SBR.

Repealing the SAB 121 veto, US BTC-spot ETF inflows and positive US SBR developments could push BTC beyond Monday’s record high of $109,350. Conversely, falling bets on an SBR and BTC-spot ETF outflows could drag BTC toward $95k.

Following Trump’s inauguration, crypto-related executive orders could be crucial for BTC and the broader market.

Market Outlook

XRP and BTC face critical junctures as legal and regulatory developments unfold. XRP’s trajectory hinges on Uyeda’s SEC strategy, while Bitcoin’s outlook depends on Trump’s crypto policies. Broader regulatory shifts could further influence market sentiment in the coming weeks.

Stay updated with our expert analysis of these developments and their implications for crypto markets. Read more here.