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XRP News: SEC v Ripple Activity and XRP-Spot ETF Chatter

By:
Bob Mason
Published: Jan 12, 2024, 01:23 UTC

The SEC v Ripple case saw an increase in activity on Thursday as the SEC and Ripple progress through remedies-related discovery.

XRP News

In this article:

Key Insights:

  • XRP gained 0.18% on Thursday, ending the session at $0.6022.
  • SEC v Ripple court filings and XRP-spot ETF-related chatter drew investor interest.
  • On Friday, the focus will remain on SEC v crypto case-related news and US lawmaker scrutiny.

The Thursday Overview

On Thursday, XRP gained 0.18%. Following a 6.03% rally on Wednesday, XRP ended the session at $0.6022.

SEC v Ripple: Court Filings Draw Investor Interest

SEC v Ripple case updates drew investor interest on Thursday. Defense attorney James Filan shared the latest court filings.

On Thursday, the SEC filed a motion to compel, asking the court to order Ripple Labs to produce certain documents. These included financial statements for 2022-2023 and post-Complaint contracts governing institutional sales.

The filing relates to XRP sales to institutional investors. Ripple and the SEC must complete remedies-related discovery by February 12. After remedy-related briefs and an SEC reply brief, Judge Analisa Torres will decide the penalty for selling XRP to US institutional investors.

The SEC will target the $770 million proceeds form XRP sales to all institutional investors. Financial statements will give the SEC access to sales proceeds and expenses relating to XRP sales.

US case law could significantly reduce the $770 million proceeds from XRP sales to institutional investors.

  • In Morrison v NAB, the US Supreme Court ruled the SEC only has jurisdiction over US-based sales. Ripple will demonstrate XRP sales to US institutional investors.
  • Additionally, in Liu v SEC, the court ruled a disgorgement award must not exceed a wrongdoer’s net profits and must go to the victims. Case law allows Ripple to deduct expenses relating to XRP sales to US institutional investors from the proceeds of XRP sales to US institutional investors.

The SEC and Ripple will present their arguments in remedy-related briefs. According to the Court briefing schedule,

  • The SEC must submit its remedy-related brief by March 19.
  • Ripple must submit its remedy-related brief by April 12.
  • The SEC must submit any reply brief by April 19.

On Thursday, Ripple responded to the SEC Motion to Compel. Ripple filed for a two-day extension until January 19 to respond to the Motion to Complete.

XRP-Spot ETFs in the Pipeline

Speculation about XRP-spot ETFs continued into Thursday. Valkyrie Chief Investment Officer Steve McClurg talked about the approval of BTC-spot ETFs opening the door to crypto-spot ETFs. McClurg pointed out that immediate market focus will be on ethereum (ETH). However, McClurg included XRP in the future of the crypto-spot ETF market, saying,

“You notice that Grayscale added Ripple to one of their trusts that is publicly traded, so it wouldn’t surprise me if I saw Ripple or Ethereum spot ETFs out there.”

Grayscale included XRP in its Digital Large Cap Fund (GDLC).

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 120124 Weekly Chart

Daily Chart

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

An XRP move through the 50-day EMA would give the bulls a run at the $0.6354 resistance level.

On Friday, the markets will focus on SEC v crypto case-related updates and US lawmaker scrutiny.

However, a break below the $0.5835 support level would bring the 200-day EMA into play.

The 14-day RSI reading, 49.19, indicates an XRP break below the 200-day EMA before entering oversold territory.

XRP Daily Chart sends bearish near-term price signals.
XRPUSD 120124 Daily Chart

4-Hourly Chart

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

An XRP move through the 200-day EMA would bring the $0.6354 resistance level into play.

However, a break below the 50-day EMA and the $0.5835 support level would give the bears a run at the $0.5470 support level.

The 4-hourly RSI, with a reading of 59.12, suggests an XRP move to the $0.6354 resistance level before entering overbought territory.

4-Hourly Chart sends bullish near-term price signals.
XRPUSD 120124 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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