XRP News Today: Ripple Case Update and Ongoing Investigation Sparks Investor Interest

The Thursday Overview

On Thursday, XRP advanced by 2.11%. Partially reversing a 3.10% slide from Wednesday, XRP ended the session at $0.6247.

SEC vs. Ripple: Focus Turns to the Ripple Opposition Brief Filing

There were no SEC vs. Ripple case-related updates for investors to consider on Thursday. XRP retook the $0.62 handle on Thursday despite the SEC pushing for a $2 billion penalty.

On March 26, the SEC published a redacted version of the remedy-related opening brief. Beyond the $2 billion penalty, the SEC asked the courts to prohibit Ripple from selling XRP to institutional investors.

However, the opening brief did not appear to isolate post-complaint XRP sales to US institutional investors. The focus on sales to all institutional investors could allow Ripple to forcefully oppose the argument to prohibit XRP sales and the $2 billion penalty.

Significantly, Ripple must demonstrate it made no post-complaint XRP sales to US institutional investors. Proof of no XRP sales to US institutional investors could address the request to prohibit XRP sales to institutional investors. Ripple can also show total proceeds from XRP sales to US institutional investors from the total pre-complaint proceeds of $729 million.

Morrison vs. NAB: The Supreme Court ruling that the SEC only has jurisdiction over sales to US institutional investors could prove pivotal.

Ripple must file the opposition brief by April 22 and publish a redaction version by April 24.

In the meantime, the ongoing investigation into crypto conflicts of interest within the SEC needs monitoring.

Office of Inspector General Investigation into SEC Conflicts of Interest

Hopes of the SEC settling the Ripple case faded further on Wednesday. Judge Katherine Failla partially granted a Coinbase (COIN) Motion to Dismiss (MTD) in the SEC vs. Coinbase case. Judge Failla did not grant the motion to dismiss the charges relating to Coinbase operating as an unregistered securities exchange, broker, and clearing agency.

Investors hoped the SEC would settle if Judge Failla granted the MTD relating to unregistered securities.

Nonetheless, an ongoing investigation into crypto conflicts of interest within the SEC could have more impact.

The Office of Inspector General (OIG) is reportedly nearing an end to investigations into crypto conflicts of interest within the SEC. The investigations relate to a central figure from the SEC vs. Ripple case, William Hinman. US government watchdog Empower Oversight instigated the OIG investigation in May 2022.

Findings of wrongdoings could tarnish the SEC case against Ripple. Significantly, the OIG findings could also force the SEC to end plans to appeal against the Programmatic Sales of XRP ruling.

As background, Empower Oversight filed a lawsuit against the SEC in 2021, alleging former officials were biased against Ripple Lab and XRP.

Empower Oversight claimed that Hinman received millions of US dollars from Simpson Thacher while guiding the SEC with crypto regulations. Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities, driving the price of BTC and ETH. Simpson Thacher was his former employer.

According to the Hinman documents, Hinman continued to meet with Simpson Thacher despite warnings from the SEC Ethics Division.

Hinman returned to Simpson Thacher after leaving the SEC. Simpson Thacher is part of a group that promotes Enterprise Ethereum.

Since the OIG began investigations into the SEC, Empower Oversight filed a FOIA request for documents relating to Hinman and former SEC Chair Jay Clayton. Clayton filed charges against Ripple on his final day as the SEC Chair. Clayton moved to One River Asset Management after leaving the SEC. One River is a crypto hedge fund focused on BTC and ETH.

Empower Oversight President Tristan Leavitt predicts the outcome of the IG investigation will become known in the next few months.

XRP Price Action

Daily Chart

XRP hovered above the 50-day and 200-day EMAs, sending bullish price signals.

An XRP breakout from the $0.64 handle would give the bulls a run at the $0.6609 resistance level. An XRP move through the $0.6609 resistance level could bring the $0.70 handle into play.

SEC vs. Ripple case-related chatter and SEC activity need investor consideration.

Conversely, a drop below the 50-day EMA could give the bears a run at the 200-day EMA and the $0.5740 support level.

The 14-day RSI reading, 51.05, indicates an XRP return to the $0.70 level before entering overbought territory.

4-Hourly Chart

On the 4-hourly, XRP remained below the 50-day EMA while holding above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

A break above the 50-day EMA would support an XRP move to the $0.6609 resistance level.

However, a drop below the 200-day EMA could give the bears a run at the $0.5740 support level.

The 4-hourly RSI, with a reading of 49.89, suggests an XRP fall to the $0.5740 support level before entering oversold territory.