XRP News Today: Court Ruling in SEC vs. Coinbase Fuels More Uncertainty

Bob Mason
Published: Mar 28, 2024, 02:00 GMT+00:00

Key Points:

  • XRP slid by 3.10% on Wednesday, ending the session at $0.6118.
  • Investors reacted to a court ruling from the SEC vs. Coinbase case, which followed the SEC opening brief in the SEC vs. Ripple case.
  • On Thursday, SEC vs. Ripple case-related chatter and SEC-related news warrant investor attention.
XRP News Today

In this article:

The Wednesday Overview

On Wednesday, XRP slid by 3.10%. Following a 1.39% loss on Tuesday, XRP ended the session at $0.6118.

SEC vs. Coinbase: Court Partially Grants Coinbase Motion to Dismiss

On Wednesday, Judge Katherine Failla partially granted the Coinbase (COIN) Motion to Dismiss (MTD).

Coinbase Chief Legal Officer Paul Grewal shared the details of the court ruling, saying,

“Today, the Court decided that our SEC case will move forward on most of the claims, but dismissed the claims against Coinbase Wallet. We were prepared for this, and we look forward to uncovering more about the SEC’s internal views and discussions on crypto regulation.”

Paul Grewal acknowledged the challenge of winning early motions against government agencies. He also called on Congress to progress toward a crypto regulatory framework, saying,

“While we continue this process, and any necessary appeals, we encourage Congress to build on the momentum we saw last year to advance comprehensive digital assets legislation in the US. This is critical if we want innovation to remain in the US.”

The court ruling was a blow for XRP and the broader crypto market. If Judge Fialla fully granted the Motion to Dismiss, the SEC would have to end its reign of regulation through enforcement. Crypto legal experts also believed a favorable ruling would force the SEC to settle the Ripple case. A settlement would end SEC plans to appeal the Programmatic Sales of XRP ruling, an XRP headwind.

Ripple Chief Legal Officer Stuart Alderoty responded to the Paul Grewal update, saying,

“A quick knock out punch would have been nice, but at the end of the day, the wheels of justice move slowly, eventually siding with the good guys. The CB Judge gave the SEC the benefit of doubt at this early stage – as she must. This is far from over.”

A partial ruling that the cryptocurrencies referenced in the case are not securities would have been a positive outcome for the broader crypto market.

It was a bad first half of the week for XRP and the broader crypto market. On Tuesday, the SEC released a redacted version of its remedy-related opening brief in the SEC vs. Ripple case. Significantly, the SEC is pursuing a $2 billion penalty for Ripple selling unregistered XRP to institutional investors.

SEC vs. Coinbase: The Background

In June 2023, the SEC charged Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

Coinbase filed the Motion to Dismiss in August 2023, arguing the SEC lacked the statutory authority to regulate US crypto exchanges.

Coinbase shares ended the Wednesday session down 3.79% to $256.70.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 280324 Weekly Chart

Daily Chart

XRP remained above the 50-day and 200-day EMAs, affirming the bullish price signals.

An XRP return to the $0.62 handle would support a move to the $0.6609 resistance level. A break above the $0.6609 resistance level could give the bulls a run at the $0.70 handle.

SEC vs. crypto case-related chatter and SEC-related news need investor consideration.

Conversely, a fall through the 50-day EMA could bring the 200-day EMA and the $0.5740 support level into play.

The 14-day RSI reading, 48.69, suggests an XRP fall to the $0.5740 support level before entering oversold territory.

XRP Daily Chart affirms bullish price signals.
XRPUSD 280324 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP sat below the 50-day and 200-day EMAs. On Wednesday, XRP fell through the 50-day and 200-day EMAs, sending bearish price signals.

An XRP breakout from the 200-day EMA would support a move to the 50-day EMA. A break above the 50-day EMA would bring the $0.6609 resistance level into play.

However, a fall through the $0.60 handle could give the bears a run at the $0.5740 support level.

The 4-hourly RSI, with a reading of 40.10, indicates an XRP drop to the $0.5740 support level before entering oversold territory.

XRP 4-Hourly Chart sends bearish price signals.
XRPUSD 280324 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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