XRP News Today: Gensler Era Ends as SEC Drops Ripple Appeal; BTC Eyes $120k

SEC and Ripple File Joint Dismissal of Appeals – Case Closed

The four-and-a-half-year SEC vs. Ripple case concluded, ending the SEC’s longest-running case against a crypto firm. XRP struck a 15-day high of $3.3355 in response to the news. US defense lawyer James Filan, who has covered the case since 2020, shared the Joint Stipulation of Dismissal on Thursday, August 7.

Notably, the filing also mentioned amicus curiae attorney John E. Deaton, who represented over 70,000 XRP holders in the case. Deaton’s representation was crucial to Judge Torres’ Programmatic Sales of XRP ruling, which former SEC Chair Gary Gensler had challenged.

CryptoLaw referred to the 2023 Programmatic Sales ruling and the Joint Stipulation of Dismissal, stating:

“This has been the law since July 2023. Now, there are no legal doubts left that this will remain the law.”

In 2023, Judge Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. The ruling enabled crypto exchanges to relist XRP, since secondary sales of the token no longer fell under the SEC’s oversight.

Pro-crypto lawyer Bill Morgan remarked on Thursday’s court filing, stating:

“The Issue of Ripple programmatic sales of XRP in the manner sold until 2020 and other distributions, that were not sales to institutions, is now res judicata as between the SEC and Ripple. Those sales and distributions were lawful. XRP itself was, is, and forever will be, not a security.”

The SEC’s vote to withdraw its appeal marked the end of Chair Gensler’s regulation through enforcement era.

What’s Next for XRP?

Investor focus will now shift to BlackRock (BLK) and the pending XRP-spot ETF applications. 21Shares, Bitwise, Canary Funds, Franklin Templeton, Grayscale, and WisdomTree are among the ETF issuers that have filed for XRP-spot ETFs. However, BlackRock has remained on the sidelines.

Before Thursday’s joint filing, speculation had intensified about BlackRock filing an XRP-spot ETF application after the Ripple case ends. The ETF issuer has been pivotal to the success of both the BTC and ETH-spot ETF markets, underscoring the importance of an iShares XRP Trust application.

Since launching in January 2024, the iShares Bitcoin Trust (IBIT) has total net inflows of $57,269 million. The second-largest BTC-spot ETF, Fidelity Wise Origin Bitcoin Fund (FBTC), has reported total net inflows of $11,963 million.

Notably, IBIT and the iShares Ethereum Trust (ETHA) ranked #2 and #3 out of 4,432 ETFs by monthly inflows in July.

Thursday’s court filing could bolster the chances of an XRP-spot ETF approval. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas commented on SEC votes for approving XRP-spot ETFs and the latest odds for an approval, stating:

“Interesting, trades reporting how Polymarket odds of an XRP ETF approval went down to 62% after the votes were disclosed, showing Crenshaw voting no, but a) she’s gonna vote no on EVERYTHING and b) it’s meaningless, she’s outnumbered = we haven’t changed our odds, still at 95%.”

However, the conclusion of the Ripple case has fueled bets of an SEC approval. Polymarket now places the chances of an XRP-spot ETF approval at 89%.

An XRP-spot ETF approval could fuel institutional demand and potentially send XRP to new record highs.

XRP Price Outlook: Focus Shifts to Spot ETFs

XRP soared 10.94% on Thursday, August 7, following Wednesday’s 1% gain, closing at $3.3202. The token outperformed the broader market, which rose 3.32%, taking the total crypto market cap to $3.83 trillion.

XRP’s near-term price trajectory hinges on several crucial catalysts, including:

• XRP-spot ETF headlines.
• Ripple’s progress on a US banking license.
• SWIFT-related updates.
• Legislative developments.

A breakout above $3.4 could enable the bulls to target the crucial $3.5 resistance level. A sustained move through $3.5 may pave the way to the July 18 all-time high of $3.6606 (Binance Exchange).

However, a break below $3.2 may bring the August 5 low of $2.9184 into play, potentially exposing the 50-day Exponential Moving Average (EMA).

Explore our full XRP forecast here for key breakout zones and timing insights.

Bitcoin Eyes Return to $120k as US Labor Market Data Support Fed Rate Cuts

Bitcoin (BTC) joined XRP in the blue on August 7. Expectations of a September Fed rate cut continued to fuel demand for risk assets, including BTC.

US economic data, on Thursday, August 7, signaled a continued softening in labor market conditions. Initial jobless claims increased to 226k (week ending August 2), up from 219k (week ending July 26). Unit labor costs rose 1.6% quarter-on-quarter in the second quarter, down from a 6.9% jump in the first quarter.

Softer labor market conditions and lower labor costs could signal a pullback in consumer spending, dampening inflation. These scenarios would support a more dovish Fed rate path.

According to the CME FedWatch Tool, the chances of a September Fed rate cut stood at 92.7% on August 7, down slightly from 94.6% on August 6.

US BTC-Spot ETF Market Eyes Second Day of Inflows

Market hopes for a September Fed rate cut also boosted demand for US BTC-spot ETFs. According to Farside Investors, the US BTC-spot ETF market reported net inflows of $91.6 million on August 6, snapping a four-day outflow streak. Flow data for August 7 suggests a potential second day of net inflows:

• Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $43.4 million.
• VanEck Bitcoin ETF (HODL) saw total net inflows of $21.5 million.
• Grayscale Bitcoin Trust (GBTC) had net inflows of $18.5 million.
• Bitwise Bitcoin ETF (BITB) reported net inflows of $17.2 million.

With BlackRock’s iShares Bitcoin Trust flow data pending, total US BTC-spot ETF inflows reached $120.8 million. BTC-spot ETF flows continue to influence BTC price trends.

BTC Price Outlook: Fed Speakers and Spot ETF Flows in Focus

BTC climbed 2.11% on Thursday, August 7, following Wednesday’s 0.8% gain, closing at $117,484.

Several key events will influence the near-term price outlook. These include:

• Fed policy signals.
• Legislative developments on Capitol Hill.
• BTC-spot ETF flows.

Potential scenarios:

• Bearish Scenario: Legislation setbacks, hawkish Fed rhetoric, and ETF outflows. A combination of these may push BTC toward $115,000, potentially exposing the 50-day Exponential Moving Average (EMA).
• Bullish Scenario: Bipartisan support for crypto legislation, dovish Fed cues, and ETF inflows. In this case, BTC could target the all-time high of $122,055.

Key Market Drivers to Fuel or Derail a Breakout

Traders should closely monitor the following price catalysts to assess whether XRP and BTC mount extended recoveries:

• XRP-spot ETF-related developments
• Legislative news: The CLARITY Act.
• Fed commentary: Hawkish or dovish signals.
• ETF market flows: Flow trends crucial for BTC’s supply-demand balance.

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