XRP News Today: Legal Battles with SEC and Fed Rate Cut Bets Stir Crypto Waters

Bob Mason
Updated: Jun 5, 2024, 00:56 GMT+00:00

Key Points:

  • On Tuesday (June 4), XRP gained 1.19%, ending the session at $0.5257.
  • US economic indicators fueled investor expectations of a Fed rate cut, influencing buyer appetite for XRP and the broader crypto market.
  • On Wednesday (June 5), investors should monitor SEC vs. crypto case-related news and US economic data.
XRP News Today

In this article:

The Tuesday Overview

On Tuesday (June 4), XRP gained 1.19%. After advancing by 1.29% on Monday (June 3), XRP ended the session at $0.5257.

US Labor Market Data, Fed Rate Cut Bets, and the SEC

On Tuesday (June 4), the US JOLTs Job Openings Report fueled investor bets on a September Fed rate cut. Job openings fell from 8.355 million to 8.059 million in April.

According to the CME FedWatch Tool, the probability of the Fed leaving interest rates unchanged in September fell from 40.5% to 33.8% on Tuesday. XRP rallied to a session high of $0.5310 before ending the session at sub-$0.53.

Uncertainty about the SEC vs. Ripple case remained an XRP headwind. A court ruling on the penalty Ripple must pay for breaching US securities laws is likely during the summer. Investors will likely react to the size of the penalty and if the courts prohibit XRP sales to institutional investors.

An injunction, prohibiting XRP sales to institutional investors may adversely affect plans to expand in the US.

XRP trailed the broader crypto market, which advanced by 2.49% to end the session at $2,547 billion. The lingering threat of the SEC appealing the Programmatic Sales of XRP ruling also needed consideration.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

While investors await court rulings from crypto cases, the SEC garnered unwanted attention on Tuesday (June 4).

The SEC, Debt Box, and Coinbase Motion for Interlocutory Appeal

Coinbase (COIN) Chief Legal Officer Paul Grewal shared news of the SEC planning to shut its Salt Lake City Office, saying,

“Attrition — is that what we are calling unprecedented misrepresentations and bad faith warranting unprecedented sanctions by a federal judge?”

On Tuesday, the SEC announced it would close its Salt Lake Regional Office in 2024, stating it experienced significant attrition. Paul Grewal linked the announcement to the recent SEC vs. Debt Box case. Salt Lake City-based Judge Robert Shelby presided over the Debt Box case.

In March 2024, Judge Robert Shelby denied the SEC Motion to Dismiss the Debt Box case. The Debt Box case garnered significant interest after Judge Shelby ordered the SEC to show cause why the courts should not sanction the SEC for making false and misleading representations. Judge Shelby also ordered the SEC to pay the legal fees for Debt Box and the receivers.

In the Tuesday announcement, the SEC also stated it considered its budget in the decision to close the regional office.

The latest SEC announcement came as the markets await a court ruling on the Coinbase Motion for Interlocutory Appeal.

If Judge Katherine Failla grants the Coinbase Motion for Interlocutory Appeal, the courts will reconsider its decision to deny, in large part, the Coinbase Motion to Dismiss (MTD). Coinbase filed the MTD in August, arguing the SEC lacks the statutory authority to regulate US crypto exchanges.

A Coinbase victory could impact SEC plans to appeal the Programmatic Sales of XRP ruling.

Investors should monitor crypto case-related updates, considering the significance of the SEC v Coinbase. Furthermore, US economic indicators and sentiment toward the Fed interest rate trajectory also need consideration.

XRP Price Action

XRP Weekly Chart sends bearish price signals.
XRPUSD 050624 Weekly Chart

Daily Chart

XRP remained below the 50-day and 200-day EMAs, confirming the bearish price trends.

An XRP move through the 50-day EMA could give the bulls a run at the 200-day EMA. A break above the 200-day EMA would support a move toward the $0.5739 resistance level.

Investors should consider SEC vs. crypto case-related updates, SEC activity, and US economic indicators.

Conversely, an XRP break below the trend lines could give the bears a run at the $0.48 handle.

The 14-day RSI reading, 50.52, suggests an XRP rise to the $0.5739 resistance level before entering overbought territory.

Daily Chart confirms the bearish price trends.
XRPUSD 050624 Daily 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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