XRP News Today: Ripple in Crucial Legal Test as XRP Struggles to Keep Up; BTC $110k

Ripple Legal Stakes Rise

It could be a crucial day for XRP as another closed SEC meeting looms, potentially spotlighting the Ripple case on Thursday, May 22. On Thursday, May 15, Judge Analisa Torres rejected the SEC’s request for an indicative ruling on settlement terms for the case. The agency had requested Judge Torres to lift the ban on XRP sales to institutional investors and to lower the $125 million penalty.

On May 15, XRP tumbled 6.51% in response to the ruling but avoided a drop below $2.2, with optimism about a resolution to the case limiting the downside. The May 22 closed meeting may provide the SEC Commissioners with the quorum to vote on the next steps in the case.

Pro-crypto lawyer Bill Morgan recently speculated about the potential need for a new vote to address Judge Torres’ concerns, questioning:

“Whether this needs another vote of the five commissioners of the SEC given that the terms of the settlement agreement that was previously approved specifically provided for an application under rule 62.1 for an indicative ruling (clause 1.b.).”

Judge Torres rejected the SEC’s request on the basis of a procedural error, failing to file the request under rule 60. Notably, the court ruling raises another crucial question. Would Ripple withdraw its cross-appeal and the SEC its appeal if the injunction remains?

It is plausible for the SEC to vote on whether to drop its appeal regardless of the outcome of the settlement.

XRP-Spot ETF Approvals Hinge on SEC Appeal Withdrawal

An SEC vote in favor of dropping the appeal could pave the way for a US XRP-spot ETF market, crucial for XRP’s supply-demand trajectory.

The US XRP futures ETF market has signaled robust investor interest. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas remarked on the imminent launch of the very first US XRP-futures ETF:

“VolatilityShares is launching the first-ever XRP futures ETF tomorrow, ticker XRPI. yes there is a 2x XRP already on market (this is first 1x) and it has $120m aum and trades $35m/day. Good signal that there will be demand for this one.”

However, the SEC recently delayed its review of the Franklin XRP Fund and Grayscale’s XRP Trust conversion, with more spot-ETF review delays likely today. 21Shares XRP ETF, Bitwise XRP ETF, Canary Funds, and WisdomTree have upcoming intermediate deadlines this week. Bloomberg Intelligence ETF Analyst, James Seyffart, remarked on the likelihood of delays:

“Delays on spot crypto ETFs are expected. A bunch of XRP ETPs have dates in next few days. If we’re gonna see early approvals from the SEC on any of these assets — i wouldn’t expect to see them until late June or early July at absolute earliest. More likely to be in early 4Q.”

XRP Price Outlook: Focus on Legal Developments

XRP gained 1.64% on Wednesday, May 21, reversing Tuesday’s 1% loss to close at $2.3952. However, the token underperformed the broader market, which rallied 2.35%, taking the total crypto market cap to $3.39 trillion. Legal uncertainties and delays to XRP-spot ETF reviews left XRP trailing the broader market.

XRP’s near-term outlook hinges on US crypto legislation, SEC vs. Ripple court filings, court rulings, and XRP-spot ETF market-related updates.

Technical support sits at $2.3. 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 Roars to New Record High on Legislation Hopes

Bitcoin (BTC) outperformed XRP on May 21 as the GENIUS Act’s progress fueled hopes for Congress to pass the Bitcoin Act. Overnight, the Senate voted in favor of progressing to the amendment process. The crypto community previously speculated that passing the GENIUS Act would be crucial for other crypto-related legislation.

Crypto Amicus Curiae attorney John E. Deaton recently commented:

“If Congress can’t get the GENIUS Act passed, we won’t see a Market Structure’s Bill, which means we won’t see any long-lasting reform until 2029, depending on how the Presidential election goes.”

State-level support for crypto has gathered momentum, fueling hopes that lawmakers will pass the Bitcoin Act. On May 21, the US state of Texas passed Senate Bill 21, the Texas Strategic Bitcoin Reserve and Investment Act. The bill now heads to state governor Greg Abbott to sign into law, allowing the state to create a special fund within the treasury to invest in crypto, including BTC.

According to the Bitcoin Reserve Monitor, New Hampshire and Arizona have approved Strategic Bitcoin Reserve bills. The US states of Alabama, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Maryland, Michigan, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, Rhode Island, and West Virginia have proposed Strategic Bitcoin Reserve bills.

BTC Rally Fueled by ETF Momentum

Meanwhile, demand for US BTC-spot ETFs contributed to BTC’s move to $110,000. The US BTC-spot ETF market may extend its inflow streak to six sessions on May 21. Inflows have tilted the supply-demand balance in BTC’s favor.

According to Farside Investors, key flow trends for May 21 included:

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $23.5 million.
• Grayscale Bitcoin Mini Trust (BTC) saw net inflows of $22.1 million.
• Bitwise Bitcoin ETF (BITB) reported net inflows of $20.5 million.

Excluding BlackRock’s (BLK) pending iShares Bitcoin Trust (IBIT) data, the US BTC-spot ETF market saw total inflows of $76.5 million after inflows of $329.2 million the previous day.

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas remarked on IBIT’s rising prominence in the ETF space, stating:

“IBIT has worked its way into the top 5 ETF in YTD flows with +$9b, just passing BIL. This is wild bc just one month ago it was ranked 47th, but has since gone Full Pac-Man with a +$6.5b spree. As gold and cash ETFs slip down, the leaderboard is slowly turning back into 2024.”

BTC Price Outlook: Monitor Capitol Hill and ETF Trends

BTC rallied 2.57% on May 21, to close at $109,605. Significantly, BTC climbed to a new record high of $110,697 before easing back.

BTC’s near-term outlook depends on Capitol Hill news, global trade headlines, macroeconomic indicators, and ETF inflows.

Potential scenarios:

• Bearish Scenario: Rising trade tensions, legislation deadlock, US recession fears, and ETF outflows. Bearish sentiment could send BTC below $100,000.
• Bullish Scenario: Easing trade tensions, upbeat US economic data, GENIUS Act progress, and ETF inflows. Bullish sentiment could drive BTC above the record high of $110,697.

What to Watch

Investors should track filings in the Ripple case, legislative updates, and macroeconomic data. These will likely dictate price trends and determine whether XRP and BTC can continue trending higher.

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