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XRP News: The SEC and Ripple Await Court Ruling on Motion to Compel

By:
Bob Mason
Published: Jan 28, 2024, 03:23 UTC

XRP bucked the broader market trend on Saturday. SEC plans to appeal the Programmatic Sales of XRP ruling remain a headwind.

XRP News

Key Insights:

  • XRP declined by 0.19% on Saturday, ending the session at $0.5308.
  • Investor sentiment toward the ongoing SEC v Ripple case and SEC plans to appeal against the Programmatic Sales ruling impacted.
  • On Sunday, SEC v Ripple case-related chatter and US lawmaker scrutiny warrant investor attention.

The Saturday Overview

On Saturday, XRP declined by 0.19%. Partially reversing a 3.54% rally from Friday, XRP ended the session at $0.5308. Significantly, XRP bucked the broader market trend. The total crypto market cap increased by 0.63% to $1,579 billion.

SEC v Ripple Case: Recap on Recent Motions and Court Timelines

There was no SEC v Ripple case-related news on Saturday. On Thursday, Judge Analisa Torres granted the Ripple Motion to file a Sur-Reply letter. The Sur-Reply letter highlighted SEC mischaracterizations in the Motion to Compel filing. Ripple opposes the SEC Motion to Compel. The SEC asked the court to order Ripple to provide,

  • Financial statements for 2022/23.
  • Post-complaint contracts governing XRP sales to institutional investors.

The SEC and Ripple are progressing through remedies-related discovery that concludes on February 12.

On July 13, Judge Torres ruled that Programmatic Sales of XRP do not satisfy the third prong of the Howey Test, establishing that XRP is not a security. However, Judge Torres also ruled that Ripple should have registered XRP as a security when sold to institutional investors.

The SEC and Ripple will argue for and against a punitive penalty for breaching Section 5 of the 1933 Securities Act.

As per the court briefing schedule,

  • March 13, 2024: The deadline for the SEC to file its remedy-related brief.
  • April 12, 2024: The deadline for Ripple to file its opposition to the SEC remedy-related brief.
  • April 19, 2024: The deadline for the SEC to file its reply, if any, to the Ripple opposition brief.

After the filings, Judge Torres will decide the penalty for breaching securities laws. A ruling could come in the summer. Upon conclusion of the case, Ripple and the SEC can appeal against any rulings.

Programmatic Sales Ruling and an SEC Appeal

In August, the SEC filed a motion for interlocutory appeal against the Programmatic Sales ruling. However, the court rejected the motion in October, forcing the SEC to wait until the conclusion of the case to file an appeal.

Ripple CEO Brad Garlinghouse expressed optimism about the outcome of an appeal, stating,

“The current Supreme Court, we’d love to see the Vegas odds on how that would go. They have not been friendly to regulators.”

However, the SEC v Terraform Labs ruling that TerraUSD and Luna are securities created more uncertainty. The uncertainty about the outcome of an SEC appeal remains an XRP headwind.

An SEC appeal could extend the SEC v Ripple case into 2025.

XRP Price Action

Weekly Chart sends mixed price signals.
XRPUSD 280124 Weekly Chart

Daily Chart

XRP remained below the 50-day and 200-day EMAs, signaling a bearish trend.

An XRP move through the $0.5470 resistance level would bring the 200-day EMA into play.

SEC v Ripple case-related chatter and US lawmaker scrutiny warrant investor attention.

However, a break below the $0.52 handle would support a fall to the $0.5042 support level.

The 14-day RSI reading, 38.55, indicates an XRP fall to the $0.5042 support level before entering oversold territory.

XRP Daily Chart sends bearish price signals.
XRPUSD 280124 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP sat below the 50-day and 200-day EMAs. The EMAs confirmed bearish price trends.

A break above the 50-day EMA would give the bulls a run at the $0.5470 resistance level.

However, a drop below the $0.52 handle would support a fall to the $0.5042 support level.

The 4-hourly RSI, with a reading of 57.83, suggests an XRP return to the $0.5470 resistance level before entering overbought territory.

XRP 4-Hourly Chart affirmed bearish price signals.
XRPUSD 280124 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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