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XRP News: Ripple and SEC Clash: Hinman’s Past Role and Future Forecast

By:
Bob Mason
Published: Sep 18, 2023, 01:50 GMT+00:00

The evolving SEC v Ripple narrative, punctuated by key players like Reed and Hinman, forecasts pivotal moments for digital assets.

XRP News

In this article:

Key Insights:

  • XRP News: XRP experienced a 1.56% drop on Sunday, marking its fifth consecutive weekly loss.
  • History Revisited: Reed’s 2015 agreement with the DOJ involved an audit of XRP sales over a five-year span.
  • SEC vs. Ripple: If the appeal proceeds, the case could stretch into 2025, further clouding the US crypto landscape.

The Sunday Overview

On Sunday, XRP fell by 1.56%. Following a 0.06% loss on Saturday, XRP ended the week down 0.95% to $0.4925. XRP extended its losing streak to five consecutive weekly losses.

Binance US CEO Norman Reed Becomes a Central Topic in Ripple Discussions

It could be a big week for XRP and the US digital asset space. Investors await the court ruling on the SEC motion for an interlocutory appeal, which could come at any time.

A ruling for the SEC would create more uncertainty about when XRP is or isn’t a security. Significantly, an appeal could extend the SEC v Ripple case into 2025.

The absence of updates on the SEC v. Ripple case led the crypto community to discuss the latest move by Binance. This week, Norman Reed, formerly with the DTTC, the New York Fed, the SEC, and Ripple, became the CEO of Binance US.

Crypto-Law US founder and Amicus Curiae attorney John E.Deaton spoke about Reed’s association with Ripple, saying,

“Norman Reed used to be the General Counsel of Ripple. His signature is on the 2015 FinCEN DOJ settlement with Ripple, which classified XRP a “convertible virtual currency.”

Deaton went on to say,

“As part of the settlement, Norman Reed, on behalf of Ripple, agreed to hire an independent auditor – approved by the DOJ – who would provide FinCEN with an audit of all XRP sales for FIVE years.”

Deaton added,

“I’ve always maintained that the SEC and the US Government knew more about Ripple than any other company involved in crypto. That really places the lawsuit in perspective now, doesn’t it?”

The SEC filed charges against Ripple Labs, Brad Garlinghouse, and Chris Larson in December 2020, coincidentally five years after the 2015 settlement.

While the SEC attempts to win the right for an interlocutory appeal, the ongoing SEC v Ripple case may uncover more skeletons in the SEC’s closet.

When considering John E. Deaton’s comments, the XRP community could return their attention to a former SEC director.

SEC v Ripple: Bill Hinman Remains on the Radar

Calls for an investigation into Bill Hinman have subsided. However, crypto advocates on Capitol Hill could pursue a Hinman investigation.

Bill Hinman, former SEC Director of the Division of Corporation Finance, said bitcoin (BTC) and ethereum (ETH) are not securities in a famous 2018 speech.

Significantly, Hinman’s former employer, Simpson Thacher, is part of a group that promotes Enterprise Ethereum. Hinman returned to Simpson Thacher. Empower Oversight, a non-profit government watchdog, filed a lawsuit against the SEC, claiming former SEC officials were biased against Ripple Labs and XRP.

Considering the increasing significance of the SEC v Ripple case, US lawmakers could open an investigation into the SEC’s actions across the crypto space. An outcome favoring a new US agency to oversee the US digital asset space could support the US crypto market.

With the US digital asset space in the spotlight, another SEC case is also drawing significant interest.

SEC v Coinbase: A Catalyst for Review?

The ongoing SEC v Coinbase (COINcase may trump the SEC v Ripple case regarding impact on the US digital asset space.

Investors await a court ruling on the Coinbase motion to dismiss (MTD). If presiding Judge Failla grants the Coinbase MTD, US lawmakers may have to open an investigation into the SEC.

By way of background, the SEC alleges that Coinbase operates as an unregistered securities broker, clearing agent, and exchange. Coinbase filed an MTD in August.

More importantly, crypto advocates on Capitol Hill could be on firmer ground to push through legislation that ends the SEC’s reign of regulation by enforcement.

XRP Price Action

Weekly Chart sends bearish signals.
XRPUSD 180923 Weekly Chart

Daily Chart

XRP remained below the 50-day and 200-day EMAs, affirming bearish price signals. Uncertainty about the outcome of the SEC motion for interlocutory appeal left XRP below the $0.5042 resistance level.

Favorable news from the Coinbase and Ripple cases would support an XRP break above the $0.5042 resistance level. A break above the resistance would give the bulls a run at the 200-day EMA.

However, the 39.50 14-Daily RSI reading supports an XRP fall to sub-$0.48 before entering oversold territory.

XRP Daily Chart affirms bearish price signals,
XRPUSD 180923 Daily Chart

4-Hourly Chart

XRP sits below the 50-day and 200-day EMAs, reaffirming bearish price signals. Failure to break above the 50-day EMA would support an XRP break below $0.48.

However, a break above the 50-day EMA would give the bulls a run at the $0.5042 resistance level.

The 14-4 Hourly RSI 47.71 reading signals an XRP return to sub-$0.48 before entering oversold territory.

XRP 4-Hourly Chart reaffirms bearish price signals.
XRPUSD 180923 4-Hourly Chart

 

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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