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XRP News Today: Ripple and SEC Clash—Key Decisions and Potential Appeals Loom

By:
Bob Mason
Published: May 14, 2024, 01:24 GMT+00:00

Key Points:

  • XRP advanced by 1.10% on Monday (May 13), closing the session at $0.5048.
  • SEC vs. crypto cases and an ongoing investigation into crypto conflicts of interest within the SEC were the focal point for investors.
  • On Tuesday (May 14), SEC activity and SEC vs. crypto case-related news need consideration.
XRP News Today

In this article:

The Monday Overview

On Monday (May 13), XRP gained 1.10%. Partially reversing a 1.36% loss from Sunday (May 12), XRP closed the session at $0.5048.

SEC vs. Ripple and the Inspector General Investigation

On Monday (May 13), there was no SEC vs. Ripple case-related news to consider. According to the court schedule, Ripple, the SEC, and any third parties filed omnibus letter motions to seal remedies-related briefing materials, including the supporting exhibits.

On Monday, May 20, the Parties and any third Parties must file letter briefs opposing the omnibus letter motions. Then, the Parties must file redacted versions of all documents within 14 days of the court’s ruling on the omnibus sealing motions.

Significantly, the court will then deliberate and decide the penalty for breaching US securities laws. Investors hoping for an end to the saga may face disappointment. After the case, the SEC plans to appeal against the Programmatic Sales of XRP ruling.

While investors await the court ruling on the Ripple penalty, the Office of Inspector General (IG) investigation also needs consideration.

In February, US government watchdog Empower Oversight announced the IG was nearing a conclusion to its investigation of alleged crypto conflicts of interest within the SEC.

The investigation has direct links to the ongoing SEC vs. Ripple case. Significantly, the outcome could influence SEC plans to appeal the Programmatic Sales ruling.

William Hinman, Jay Clayton, and Crypto Conflicts of Interest

In 2021, Empower Oversight filed a lawsuit against the SEC, claiming former SEC staff acted with bias against Ripple Labs and XRP. The lawsuit alleged former SEC Director of the Division of Corporation Finance, William Hinman, received millions of dollars from former employer Simpson Thacher while working at the SEC.

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

The link between the SEC and Ethereum extended to former SEC Chair Jay Clayton.

In March, Empower Oversight sent a letter to the FOIA, citing concerns regarding former SEC Chair Jay Clayton. Significantly, Empower Oversight highlighted Jay Clayton joined BTC and ETH-focused hedge fund One River Asset Management after leaving the SEC. During his tenure at the SEC, Clayton stated BTC was not a security and affirmed Hinman’s view about ETH.

Notably, Clayton became an advisor for Electric Capital in 2022. Electric Capital is an investor in Consensys, an Ethereum developer.

In April, Consensys made the crypto news by filing a lawsuit against the SEC. Consensys stated that,

“The SEC should not be allowed to arbitrarily expand its jurisdiction to include regulating the future of the internet by wrongly labeling ETH a security.”

The investigation will unlikely affect the court ruling on the penalty Ripple must pay for breaching US securities laws. However, the outcome of the investigation could affect SEC plans to appeal the Programmatic Sales of XRP ruling. An end to SEC plans to appeal could be a boon for XRP.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 140524 Weekly Chart

Daily Chart

XRP sat well beneath the 50-day and 200-day EMAs, sending bearish price signals.

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

Investors should monitor SEC activity and SEC vs. crypto case-related news.

Conversely, an XRP fall through the $0.4950 handle could give the bears a run at sub-$0.48.

The 14-day RSI reading, 42.74, suggests an XRP break below the $0.48 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 140524 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP remained below the 50-day and 200-day EMAs. The EMAs affirmed the bearish price signals.

A move through the trend lines and 50-day EMA could bring the 200-day EMA and the $0.5361 resistance level into play. Selling pressure could intensify at the top trend line. The 50-day EMA is confluent with the top trend line.

However, an XRP drop below the $0.4950 handle could bring sub-$0.48 levels into play.

The 14-day RSI reading, 45.98, indicates an XRP drop to the $0.48 handle before entering oversold territory.

XRP 4-Hourly Chart reaffirms the bearish price signals.
XRPUSD 140524 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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