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XRP News: SEC’s Gensler Grilled; Ripple’s Surprise Acquisition U-turn

By:
Bob Mason

Ripple navigates through SEC grilling and lawsuits, while a surprising twist in acquisition plans with Fortress Trust leaves the market in anticipation.

XRP News

In this article:

Key Insights:

  • XRP rebounded on Thursday, posting a 2.14% gain to close at $0.5100.
  • Ripple’s Chief Legal Officer draws attention to Rep. Torres’s tough stance on Gensler.
  • Varying interpretations of Securities Laws underlined at Capitol Hill, stressing the need for regulatory clarity.

The Thursday Overview

On Thursday, XRP gained 2.14%. Reversing a 0.56% loss from Wednesday, XRP ended the day at $0.5100.

The Gary Gensler Grilling Continued to Grab the News Headlines

On Wednesday, SEC Chair Gary Gensler gave testimony at the Financial Services Committee hearing: Oversight of the Securities and Exchange Commission.

Beyond the tough questions and comments from the Committee Chair Patrick McHenry, other lawmakers tested the SEC Chair’s knowledge of Howey.

Ripple Chief Legal Officer Stuart Alderoty shared a Republican Senator Ritchie Torres post, saying,

“A must-watch. For hours, Mr. Gensler smugly evaded question after question (even laughing about how rich he is) until Rep. Torres took him out with a command of the law and a touch of South Bronx street sense. Gensler didn’t know what hit him until it was too late.”

Republican Ritchie Torres presented a hypothetical situation to the SEC Chair. Rep. Torres asked Gensler if purchasing a Pokeman card would qualify as a securities transaction. Gensler responded no. Rep. Torres then asked if buying a tokenized Pokeman card on a digital exchange via a blockchain would be a securities transaction.

The Capitol Hill hearing showcased the subtleties and varying interpretations of Securities Laws, enabling the SEC to regulate through enforcement. Significantly, the hearing highlighted the need for US lawmakers to roll out appropriate regulations and oversee the application of regulations across the digital asset space.

While the Gary Gensler hearing did the rounds, there were no SEC v Ripple case-related updates to influence investor sentiment. Investors await a court ruling on the SEC motion for interlocutory appeal.

However, Ripple CEO Brad Garlinghouse made an announcement on Thursday.

Ripple Pulls Out of Fortress Trust Acquisition

Ripple CEO Brad Garlinghouse announced Ripple has pulled out of the Fortress Trust Acquisition, saying,

“A few weeks ago, we signed a letter of intent to acquire Fortress Trust – we’ve since made the decision not to move forward with an outright acquisition, though Ripple will remain an investor in Fortress.io.”

The Ripple CEO continued,

“The Fortress team is incredibly talented, and has built product solving real customer problems. While this outcome is different from what was originally planned, we’ll continue to support them and hope to work together in the future!”

Ripple announced the planned acquisition of Fortress Trust in early September. Brad Garlinghouse did not elaborate on the reasons for pulling out.

XRP Price Action

Weekly chart sends bullish near-term price signals.
XRPUSD 290923 Weekly Chart

Daily Chart

XRP sat below the 50-day and 200-day EMAs, affirming bearish price signals. A fall through the $0.5042 support level would give the bears a run at the $0.4700 support level.

Updates from the ongoing SEC cases against Ripple and Coinbase (COIN) will influence investor sentiment.

An XRP break above the 200-day and 50-day EMAs would support an XRP move to the trend line. A breakout from the 200-day and 50-day EMAs would signal a reversal of the near-term bearish trend.

The 50.08 14-Daily RSI reading supports move through the 200-day and 50-day EMAs before entering overbought territory.

XRP Daily Chart sends bearish price signals.
XRPUSD 290923 Daily Chart

4-Hourly Chart

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

A break above the 200-day EMA could support an upward movement of XRP towards the trend line.

However, a fall through the 50-day EMA and $0.5042 support level would bring sub-$0.48 into view. Buying appetite will likely intensify at $0.5040. The 50-day EMA is confluent with the $0.5042 support level.

The 14-4 Hourly RSI 58.98 reading suggests that an XRP breakout from the 200-day EMA could reach the $0.52 mark before entering overbought territory.

XRP 4-Hourly Chart sends bullish near-term price signals.
XRPUSD 290923 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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