XRP News Today: Banking Charter Plans and SEC Vote Drive XRP Price Outlook; BTC Hits $109k

SEC vs. Ripple Case: Will the SEC Vote to Drop the Appeal?

XRP traders brace for SEC decision. The SEC vs. Ripple case and XRP will take center stage on Thursday, July 3. Investors await an SEC decision on whether to proceed with its appeal against the Programmatic Sales of XRP ruling.

Ripple announced it would drop its cross-appeal on June 27 despite Judge Analisa Torres rejecting the second joint motion for an indicative ruling on settlement terms. Settlement terms included lifting the injunction prohibiting XRP sales to institutional investors and reducing the penalty to $50 million.

In March, Ripple Chief Legal Officer Stuart Alderoty declared the SEC had agreed to drop its appeal without conditions. The statement suggests Judge Torres’ ruling should have no bearing on the SEC’s appeal withdrawal plans. Ripple’s decision to drop its cross-appeal will likely be the crucial factor in the SEC’s decision to formally withdraw the appeal.

On July 3, the SEC will hold its first closed meeting since Judge Torres denied the joint parties’ request for an indicative ruling on settlement terms. SEC Chair Paul Atkins and the Commissioners could potentially vote on the appeal withdrawal today and make an announcement tomorrow.

Former SEC lawyer Marc Fagel recently offered insights into the agency’s process toward dropping an appeal, stating,

“SEC likely still needs to vote to dismiss appeal. Then the parties need to submit papers dismissing their respective appeals, after which the district court’s order goes into effect. Could take several weeks or more, but could possibly be expedited. No set timeframe.”

Ripple Targets Mainstream Finance

While the SEC vs. Ripple case continues to draw interest, Ripple made waves on Wednesday, July 3, announcing plans to apply for a national banking charter. Brad Garlinghouse, Ripple’s CEO, commented:

“True to our long-standing compliance roots, Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (a unique!) benchmark for trust in the stablecoin market.”

Wednesday’s announcement followed news of Ripple applying for a Fed Master account.

He also commented on the shifting landscape, stating,

“While Congress is working towards clear rules and regulations, and banks (in a far cry from the years of Operation Chokepoint 2.0) are leaning in, this access would allow us to hold RLUSD reserves directly with the Fed and provide an additional layer of security to future proof of trust in RLUSD.”

XRP Price Outlook: SEC Appeal Headlines and ETF Developments

XRP rallied 2.87% on Wednesday, July 2, reversing Tuesday’s 2.93% loss to close at $2.2346. The token underperformed the broader market, which jumped 3.34%, taking the total crypto market cap to $3.32 trillion.

The near-term XRP price trajectory hinges on the SEC’s appeal vote and XRP-spot ETF-related updates.

A breakout above the June 30 high of $2.3275 could open the door to retesting the May high of $2.6553. A sustained move through $2.6553 may bring $3 and the 2025 high of $3.3999 into sight.

Conversely, a drop below the 50-day EMA could expose the 200-day EMA and potentially the $1.9299 support level.

For a deeper dive, see our full XRP forecast here.

Bitcoin Hits $109k: US Labor Market Data Fuels Fed Rate Cut Expectations

While XRP advanced on hopes for an end to the Ripple case, bitcoin (BTC) rebounded on rising Fed rate cut expectations. US labor market data fueled speculation about a July Fed rate cut, boosting demand for risk assets such as tech stocks and crypto.

The ADP reported private payrolls dropped 33k in June after a modest 29k increase in May. Private payrolls reportedly fell for the first time since March 2023. Market focus on the US labor market has intensified since Fed Chair Powell’s comments on July 1. On monetary policy, Powell stated:

“Not going to rule in or rule out any particular meeting. Officials will be monitoring, particularly, what does show up in terms of inflation or what does not show up.”

Powell also underscored the importance of labor market data, stating:

“We watch very carefully for signs of unexpected weakness.”

BTC rallied from $107,240 to a session high of $109,793 after the release of the ADP numbers. The crucial US Jobs Report, out on July 3, will have a greater weight on Fed policy.

US BTC-Spot ETF Market Inflows Soar

Rising Fed rate cut expectations also boosted demand for BTC-spot ETFs, crucial for BTC price trends. According to Farside Investors, key US BTC-spot ETF market flows for July 2 included:

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $184 million.
• ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $83 million.
• Bitwise Bitcoin ETF (BITB) had net inflows of $64.9 million.
• Grayscale Bitcoin Trust (GBTC) reported net inflows of $34.6 million.

With BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) flow data pending, total US BTC-spot ETF inflows reached $407.8 million, potentially reversing Tuesday’s $342.2 million of outflows. On July 1, the US BTC-spot ETF market snapped a 15-day inflow streak, falling short of a record 19-day inflow run.

BTC Price Outlook: Trade developments, US Data, the Fed, and ETF Flows

BTC rallied 2.93% on July 2, reversing Tuesday’s 1.33% loss to close at $108,846.

The near-term price trajectory hinges on several key drivers, including US economic data, Fed monetary policy cues, legislative news, trade developments, and ETF flows.

Potential scenarios:

• Bearish Scenario: Renewed trade tensions, legislation setbacks, hawkish Fed rhetoric, strong US data, and ETF outflows. A combination of these may push BTC toward the 50-day Exponential Moving Average (EMA), potentially exposing $100,000.
• Bullish Scenario: Easing trade tensions, bipartisan support for crypto bills, dovish Fed rhetoric, softer US data, and ETF inflows. Under these scenarios, BTC could retarget its all-time high of $111,917.

What to Watch

Investors should track Ripple case-related updates, legislative news, trade headlines, the US economic calendar, Fed chatter, and ETF flows. These factors remain crucial in dictating whether XRP or BTC will revisit record highs.

See where analysts expect XRP and BTC to head as legal and political risks evolve.