XRP News Today: Legal Uncertainty Clouds ETF Hopes, XRP Slumps; BTC at $108k

SEC Silence Fuels Legal Uncertainty, Pressures XRP

XRP came under heavy selling pressure on Friday, May 23, as the SEC remained silent on its next steps in the Ripple case. Hopes for a swift resolution were dampened by the agency’s lack of communication following its closed door meeting on May 22.

Investors had anticipated a prompt response to Judge Torres’ decision rejecting the SEC’s request for an indicative ruling. The agency sought to lift the injunction prohibiting XRP sales to institutional investors and to reduce the $125 million penalty.

Judge Torres cited a procedural error and a failure to demonstrate that a settlement serves the public and institutional investors for denying the SEC’s request. Pro-crypto lawyers speculated that the SEC would need to declare XRP a commodity and state that its legal arguments were flawed.

Amicus Curiae attorney John E. Deaton commented:

“The SEC would need to publicly admit its position in the case was flawed and that XRP is a commodity, not a security.”

XRP fell from $2.6507 to a May 23 low of $2.2849 in response to the court ruling. The SEC’s silence on the case added to the uncertainty.

An end to Ripple’s cross-appeal and the SEC’s appeal against the Programmatic Sales of XRP ruling likely hinges on lifting the injunction and reducing the penalty. An SEC decision to pursue the appeal could also weigh on the chances for an XRP-spot ETF.

XRP Price Outlook: Legal Risks in Focus

XRP slid 5.57% on Friday, May 23, reversing Thursday’s 1.53% gain to close at $2.2964. The token underperformed the broader market, which dropped 4.09% to a total crypto market cap of $3.33 trillion.

XRP’s near-term outlook hinges on court filings, court rulings, and XRP-spot ETF market-related updates.

Technical support sits at $2.28. A break above the May 12 high of $2.6553 could signal a move toward $3.00, with the potential to reach the record high of $3.5505.

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

Bitcoin Dives on Trade Tension Shock

Bitcoin (BTC) joined XRP and the broader market with heavy losses on May 23. Renewed trade tensions triggered a flight to safety, sending BTC crashing from its record high of $111,912.

Market intelligence platform Santiment commented on Friday’s price action:

“Just a day after Bitcoin’s new $112K all-time high was established, tariff drama was quickly brought back onto the menu and has temporarily spoiled the crypto party. President Trump has announced two new major tariff threats as the U.S. heads into Memorial Day weekend: A 50% tax on all imports from the European Union and a 25% tariff specifically targeting Apple if the company continues manufacturing iPhones outside the United States.”

The flight to safety left the Nasdaq Composite Index down 1%, while gold rallied 1.89% to close at $3,357.

BTC-Spot ETF Flows Cushion Downside

Despite the ‘risk-off’ sentiment, the US BTC-spot ETF market extended its inflow streak to eight sessions, limiting BTC’s losses. However, it was a mixed session. According to Farside Investors, key flows on May 23 included:

• iShares Bitcoin Trust (IBIT) saw net inflows of $430.8 million.
• Grayscale Bitcoin Trust (GBTC) had net outflows of $89.2 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) reported net outflows of $73.7 million.
• ARK 21Shares Bitcoin ETF (ARKB had net outflows of $73.9 million.

BlackRock’s (BLK) IBIT remained the dominant player, with weekly net inflows of $2,432 million. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas commented on IBIT’s May 22 inflows of $877.2 million, stating:

“IBIT was #1 among ALL ETFs inflows yesterday, a first I believe (the Mighty VOO took a rare day off), and a byproduct of the ATH-induced feeding frenzy volume mentioned below. IBIT’s Pac-Man spree is now up to about $8b in 5wks. BTC ETFs lifetime net flows (most imp metric) at $44.5b. TWO STEPS FORWARD IN EFFECT.”

BTC Price Outlook: Legislation and ETF Trends

BTC dropped 3.79% on May 23, reversing the previous day’s 1.8% gain to close at $107,357. Significantly, BTC snapped a three-day winning streak.

BTC’s near-term trajectory hinges on legislative developments, global trade developments, macroeconomic indicators, and ETF inflows.

Potential scenarios:

• Bearish Scenario: Escalation in trade tensions, legislation deadlock, US recession concerns, and ETF outflows. Bearish sentiment could send BTC below $100,000.
• Bullish Scenario: Easing trade tensions, positive US economic data, Bitcoin Act progress, and ETF inflows. Bullish sentiment could drive BTC above the record high of $112,912 to target $115,000.

Notably, Senator Cynthia Lummis recently reintroduced the Bitcoin Act, proposing the US government acquire one million BTC over five years, with a 20-year mandatory holding period.

What to Watch

Investors should track developments in the Ripple case, legislation out of Washington, and US macroeconomic data. These will likely dictate market sentiment and determine whether XRP and BTC can reclaim recent highs.

Read analysts’ insights on what could drive cryptocurrencies to new highs.