XRP News: Ripple’s Chief Legal Officer Reacts to Binance Scandal – XRP Implications

Key Insights:

• XRP slid by 5.55% on Tuesday, ending the session at $0.5787.
• News of CZ stepping down as CEO of Binance and a $4 billion resolution sent shockwaves through the crypto market.
• SEC v Ripple case-related news and crypto market activity in the US remain focal points.

The Tuesday Overview

On Tuesday, XRP slid by 5.55%. Following a 2.16% decline on Monday, XRP ended the day at $0.5787.

Ripple Chief Legal Officer Stuart Alderoty Targets the SEC

On Tuesday, there were no SEC v Ripple case-related updates to influence the investor appetite for XRP. However, Binance-related news sent shockwaves across the crypto market, impacting XRP.

The US Department of Justice (DoJ) issued a press release headlined, Binance and CEO Plead Guilty to Federal Charges in $4B Resolution. In addition to the $4 billion resolution, Binance founder CZ stepped down as CEO.

Ripple Chief Legal Officer Stuart Alderoty reacted to the news, saying,

“The Binance resolution of anti-money laundering (etc.) violations is a necessary step to bring the crypto industry into compliance with these important laws and safeguards. Big banks all went through some version of this years ago.”

Alderoty highlighted the DoJ charges did not include securities law violations or suggest Binance supported securities trading.

The Ripple Chief Legal Officer did note that the SEC was absent from the Binance deal, saying,

“The Treasury and CFTC joined the DOJ in the Binance deal. The SEC did not, and was glaringly absent from the stage today. This sends a clear message that the agency – under Gensler – has not only become an outlier globally, but an outlier within its own government.”

Alderoty added,

“The SEC, like a petulant child who can’t stand being ignored, tweeted its misguided suit against Kraken at 3pmET today – the exact time the DOJ press conference regarding Binance was scheduled to begin. Truly secondhand embarrassment at this juvenile behavior.”

Before concluding,

“Remember, the SEC’s fabricated term “crypto asset securities” is nowhere to be found in the DOJ case against Binance because it has no meaning under the law. The Courts have been very clear that tokens themselves are not securities.”

On Tuesday, the SEC sued Kraken in another regulation by enforcement move.

Kraken and Commingling Charges

SEC charges included operating an unregistered exchange. However, unlike Coinbase (COIN), the SEC also alleged Kraken commingled customer cryptos and fiat.

The hefty $4 billion resolution could raise concerns about the amount Kraken may pay in penalties in the event of a loss. After the FTX trial, lawmakers could come down hard on platforms that commingle customer assets.

Amicus Curiae attorney John E. Deaton sent a message to Kraken users/customers, saying,

“If you’re a Kraken ser/customer and want to potentially join as amicus curiae, in the case filed by the SEC, below is a Google form to join. Simply put, if you don’t want the SEC claiming to speak on your behalf, consider joining.”

Deaton previously represented over 70,000 XRP holders in the SEC v Ripple case.

XRP Price Action

Daily Chart

XRP sat below the 50-day EMA while holding above the 200-day EMA, sending bearish near-term but bullish longer-term price signals.

An XRP break above the trend line and the 50-day EMA would support a move to the $0.6354 resistance level. Selling pressure could intensify at $0.59. The 50-day EMA is confluent with the trend line.

SEC v Ripple case-related news and Binance will be focal points. Reports of Binance meeting all withdrawal requests could support an XRP rebound.

However, an XRP fall through the $0.5835 support level would bring the $0.5470 support level and the 200-day EMA into view.

The 14-day RSI reading of 43.48 indicates an XRP fall to the $0.5470 support level before entering oversold territory.

4-Hourly Chart

On the 4-hourly chart, XRP holds below the 50-day and 200-day EMAs, sending bearish price signals. Significantly, XRP fell through the trend line on Tuesday, another bearish price signal.

An XRP break above the trend line would support a move toward the 200-day EMA.

However, a fall through the $0.5835 support level would bring the $0.5470 support level into view.

The 4-hourly RSI, with a reading of 32.83, suggests an XRP drop below the $0.5835 support level before entering oversold territory.