XRP News Today: Ripple Hits SEC Over ‘Ambiguous’ Crypto Rules in Senate Push; BTC Dips

Ripple Targets SEC Over Digital Asset Legislation

Ripple Chief Legal Officer Stuart Alderoty put the spotlight on the SEC and the Senate Committee on Banking, Housing, and Urban Affairs. Alderoty shared a letter to the Committee Chair Tim Scott, stating:

“With over a decade of experience working with regulators all over the world—and hard-earned lessons from our SEC fight—Ripple welcomes the chance to offer our unique perspective as Congress advances legislation that protects consumers and unlocks crypto innovation.”

Notably, the Ripple CLO criticized the digital asset market structure bill for failing to deliver regulatory clarity, saying:

“The draft creates more ambiguity than clarity for the industry in its attempt to delineate SEC jurisdiction over digital assets. It brings most tokens and projects into an SEC-administered gatekeeping and disclosure regime, even when sales or project activity fall outside the SEC’s traditional scope.”

Alderoty highlighted potential issues with the bill’s definition of ‘ancillary asset’ vis-à-vis changes in administration and the potential for future enforcement. He stated:

“There is no objective statutory endpoint, leaving market participants dependent on discretionary SEC action to terminate oversight. While we may hope that the current Commission will act in good faith, changes in administration can bring shifts in enforcement priorities and interpretations.”

Alderoty’s letter underscored the issues with the SEC having the opportunity to overreach, potentially reversing progress made in luring crypto firms back to the US.

It is unclear whether the Committee will publicly respond to Alderoty’s letter that preceded Thursday’s closed SEC meeting.

Closed SEC Meeting Looms, Spotlighting the Ripple Case

With Congress in recess until September, investor focus will return to the SEC vs. Ripple case. The SEC will hold its weekly closed meeting on Thursday, August 7. Crucially, the closed meetings provide an opportunity for Chair Paul Atkins and the Commissioners to vote on withdrawing the appeal against the Programmatic Sales of XRP ruling.

Thursday’s meeting marks the sixth week since Judge Analisa Torres rejected the parties’ motion for an indicative ruling on settlement terms. Investors expect the agency to vote to dismiss the appeal ahead of the August 15 filing deadline for the US Court of Appeals. The SEC must submit a status report on the Ripple settlement terms that Judge Torres rejected.

An appeal withdrawal could be a crucial stepping stone to the approval of pending XRP-spot ETF applications. The crypto community expects the launch of XRP-spot ETFs to be the token’s next key price catalyst.

XRP Price Outlook: SEC Appeal and Spot ETFs

XRP slid 3.58% on Tuesday, August 5, partially reversing Monday’s 4.17% gain to close at $2.9632. The token underperformed the broader market, which fell 1.46% to a total crypto market cap of $3.67 trillion.

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

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

A breakout above $3 could bring the crucial $3.2 resistance level into play. A sustained move through $3.2 may pave the way to the July 28 high of $3.3302, bringing the record high of $3.6606 into play.

However, a drop below the August 5 low of $2.9184 may enable the bears to target the 50-day Exponential Moving Average (EMA). Intensifying selling pressure could expose the August 3 low of $2.7254.

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

Bitcoin Under Pressure as BlackRock’s IBIT Sees Outflow Surge

Bitcoin (BTC) joined XRP and the broad-based crypto market in the red on August 5. US BTC-spot ETF market outflows from the end of July extended into August, weighing on BTC demand.

According to Farside Investors, ETF issuers reported net outflows of $323.5 million on August 4. The US BTC-spot ETF market could potentially extend its outflow streak to four sessions on August 5. Key flows on August 5 included:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $99.1 million.
• Grayscale Bitcoin Trust (GBTC) had net outflows of $19.7 million.

With BlackRock (BLK) iShares Bitcoin Trust (IBIT) flow data pending, total US BTC-spot ETF outflows reached $118.8 million. Notably, IBIT reported net outflows of $292.2 million on August 4, its largest since May 30 and only the fourth outflow since June 1.

A weakening US macroeconomic backdrop has potentially weighed on demand for spot ETFs. Overnight, on August 5, the ISM Services PMI unexpectedly dropped from 50.8 in June to 50.1 in July. Economists had expected the PMI to increase to 51.5. As the services sector accounts for around 80% of US GDP, the weak ISM Services PMI fueled recession fears. BTC fell from $114,547 to a session low of $112,722 after the data release.

The PMI data also weighed on Wall Street. The Nasdaq Composite Index and S&P 500 fell 0.65% and 0.49%, respectively.

Despite total net outflows reaching $1,254.6 million in August, BTC continues to hold above the crucial $100,000 level.

Broader institutional demand continues to support prices at current levels. 22 firms acquired 33,411 BTC in the week ending August 3, following a haul of 52,019 BTC the week prior.

BTC Price Outlook: US Recession Risks and Spot ETF Flows in Focus

BTC fell 0.84% on Tuesday, August 5, reversing Monday’s 0.69% gain to close at $114,136.

Several key factors will continue to influence the near-term price trajectory. These include:

• US labor market data.
• Fed guidance.
• Legislative developments on Capitol Hill.
• BTC-spot ETF flows.

Potential scenarios:

• Bearish Scenario: Legislation setbacks, weaker US data, hawkish Fed rhetoric, and ETF outflows. A combination of these may push BTC below the 50-day Exponential Moving Average (EMA), bringing the $110,000 support level into play.
• Bullish Scenario: Bipartisan support for the CLARITY Act, strong labor market data, dovish Fed signals, 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 track these key price drivers to assess whether XRP and BTC mount extended recoveries:

• Ripple case: Pending SEC appeal vote.
• Legislative headlines: The CLARITY Act.
• US economic data: Jobless Claims.
• 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.