XRP News Today: OIG Investigation Findings and Coinbase Motion to Dismiss

Bob Mason
Updated: Mar 8, 2024, 03:13 GMT+00:00

Key Points:

  • XRP advanced by 2.60% on Thursday, closing the session at $0.6280.
  • Scrutiny of the SEC and bets on an H1 2024 Fed rate cut contributed to the gains.
  • On Friday, SEC v crypto case-related news, the US Jobs Report, and BTC-spot ETF market flows need investor consideration.
XRP News Today

In this article:

The Thursday Overview

On Thursday, XRP advanced by 2.60%. After gaining 3.34% on Wednesday, XRP closed the session at $0.6280.

XRP tracked the broader market into positive territory. On Thursday, the total crypto market cap increased by 1.63% to $2,466 billion. Bets on an H1 2024 Fed rate cut fueled demand for riskier assets. The Nasdaq Composite Index rallied 1.51%, with gold (XAU/USD) continuing to climb higher.

Moreover, increased scrutiny of the SEC and sentiment toward SEC v crypto cases contributed to the gains.

SEC v Ripple: Scrutiny of the SEC Cast Doubts on SEC Appeal Plans

There were no SEC v Ripple case-related updates for investors to consider on Thursday. Nonetheless, increased scrutiny of the SEC may impact SEC plans to appeal the Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled programmatic sales of XRP did not satisfy the third prong of the Howey Test.

Several driving forces could be behind a shift in sentiment toward an SEC appeal against the Programmatic Sales ruling. Increased scrutiny of the SEC could singlehandedly force lawmakers to introduce legislation and assign authority beyond the SEC to regulate the US crypto space.

Office of Inspector General Investigation into SEC Conflicts of Interest

An ongoing investigation into the SEC stands out as a possible game-changer. The US Office of Inspector General (OIG) is investigating allegations of conflicts of interest within the SEC. The conflicts of interest relate to former SEC director William Hinman. William Hinman was a focal point in the SEC v Ripple and Empower Oversight v SEC cases.

Empower Oversight alleges William Hinman received millions of dollars from former employer Simpson Thacher while working at the SEC. William Hinman guided crypto oversight. After leaving the SEC, Hinman returned to Simpson Thacher. Empower Oversight filed a lawsuit against the SEC in 2021.

Simpson Thacher is part of a group that promotes Enterprise Ethereum. In 2018, William Hinman famously said that bitcoin (BTC) and ethereum (ETH) are not securities. Court documents relating to the William Hinman speech revealed Hinman continued to meet with Simpson Thacher despite warnings from the SEC Ethics division.

If the OIG finds conflicts of interest in crypto-related activity, the SEC may have to settle the Ripple case. A settlement would remove the option to appeal against any rulings from the case, including the Programmatic Sales ruling.

Another consideration is US lawmaker interest in ongoing SEC v crypto cases. Two cases, in particular, have garnered significant interest.

SEC v Coinbase: In August, Coinbase (COIN) filed a Motion to Dismiss (MTD). Coinbase argued the SEC lacks the statutory authority to regulate US crypto exchanges. US Senator Cynthia Lummis filed an amicus curiae brief in August supporting the MTD.

Judge Katherine Failla heard oral arguments in January. Legal experts believed Coinbase offered a better definition of an investment contract. Judge Failla could impact the regulation through an enforcement approach if she grants the Motion to Dismiss.

John E Deaton, candidate for the Senate in Massachusetts, believes the SEC will settle the Ripple cases if the court grants the MTD. More significantly, US lawmakers may have to respond with legislation to assign statutory authority to regulate the US crypto space.

SEC v Debt Box: In January, the SEC filed a Motion to Dismiss charges against Debt Box. The SEC filed the Motion amidst increased scrutiny from the courts. In December, the presiding Judge in the Debt Box case ordered the SEC to show why the courts should not impose sanctions on the SEC for making false and misleading representations to the court.

US Senators reacted to the Motion to Dismiss filing. Five US Senators, including Senator Lummis, co-signed a letter in February to SEC Chair Gary Gensler. The Senators threatened increased scrutiny of SEC cases against cryptos.

Considering the current landscape, SEC plans to appeal against the Programmatic Sales ruling may be under threat.

Findings from the OIG Investigation and a ruling on the Coinbase MTD could come at any time.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 080324 Weekly Chart

Daily Chart

XRP hovered well above the 50-day and 200-day EMAs, sending bullish price signals.

A break above the $0.6354 resistance level would support a move to the March 5 high of $0.6689.

SEC v crypto case-related updates, the OIG Investigation, and Fed rate cut bets need consideration.

However, a break below the $0.62 handle could give the bears a run at the $0.5835 support level.

The 14-day RSI reading, 61.26, suggests an XRP break above the March 5 high of $0.6692 before entering overbought territory.

XRP Daily Chart affirms bullish price signals.
XRPUSD 080324 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP remained above the 50-day and 200-day EMAs, confirming the bullish price trends.

An XRP move through the $0.6354 resistance level would give the bulls a run at the March 5 high of $0.6692.

On the other hand, a break below the 50-day EMA would bring the $0.5835 support level into play.

The 4-hourly RSI, with a reading of 53.56, suggests an XRP move through $0.6692 before entering overbought territory.

XRP 4-Hourly Chart reaffirms bullish price signals.
XRPUSD 080324 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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