XRP News Today: Ripple’s Latest Market Report Amidst SEC Lawsuit Tensions

The Friday Overview

On Friday (May 17), XRP advanced by 1.61%. Reversing a 0.64% loss from Thursday (May 16), XRP closed the session at $0.5239.

Q1 2024 XRP Markets Report

Ripple released the XRP Markets Report for Q1 2024 on Friday (May 17). Salient points from the Report included,

• US BTC-spot ETFs saw total net inflows of almost $12 billion, with cumulative trading volumes hitting $207 billion in three months.
• Blackrock (BLK) recorded total net inflows of $67 billion across its entire ETF product offering. iShares Bitcoin Trust (IBIT) saw net inflows of approximately $13.9 billion alone.
• XRP spot volumes (Average Daily Volumes) jumped to $865 million in Q1 2024, up 40% from Q4 2023.
• The SEC filed the request for remedies against Ripple, asking the court for almost $2 billion, comprising $900 million in disgorgement, approximately $200 million in pre-judgment interest on the disgorgement request, and circa $900 million in penalties. The SEC also asked for an injunction.
• Ripple filed its remedies-related opposition brief in April, arguing that a penalty of no more than $10 million would be appropriate in a case lacking allegations of fraud or recklessness.
• A final judgment is likely in the coming months.
• EU regulators published a draft regulatory standard for stablecoin issuers under MiCA (Markets in Crypto-Asset Regulation).
• US Senators Cynthia Lummis and Kirsten Gillibrand introduced a new stablecoin bill.
• The Virtual Asset Regulatory Authority in Dubai, the Monetary Authority of Singapore (MAS), and South Africa featured on the regulatory front.
• SEC battles widened, with investigations into ETH and Wells Notices to Uniswap (UNI) and Robinhood (HOOD).
• SEC v Coinbase (COIN): Judge Failla denied, in large part, the Coinbase Motion to Dismiss (MTD). Coinbase filed a Motion for interlocutory Appeal against the ruling.
• Sam Bankman-Fried received a 25-year sentence, with Changpeng Zhao getting a four-month sentence.

SEC vs. Ripple Case: Court Ruling on Remedies

There were no SEC vs. Ripple case-related updates on Friday (May 17). The lack of case-related news left investors considering the likely penalty for breaching US securities laws.

In March, the SEC pursued a $2 billion financial penalty and an injunction, prohibiting XRP sales to US institutional investors. With Ripple arguing for a $10 million penalty, the courts must decide, and the decision may hinge on post-complaint activity.

In the remedy-related brief filings, the SEC argued Ripple continued breaching US securities laws after the December 2020 complaint.

Ripple contested that XRP sales to accredited investors and through ODL agreements did not breach US securities laws. Sales to accredited institutional investors are exempt, and Ripple argued that ODL contracts prevent investors from earning profits or experiencing losses.

On the matter of post-complaint conduct, Judge recently surmised,

“The SEC credibly argues that the District Judge may consider post-complaint conduct when determining whether an injunction is necessary and just.”

At the end of the case, investors expect the SEC to appeal against the Programmatic Sale of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

An appeal could impact buyer demand for XRP. Significantly, a successful appeal could adversely affect the broader crypto market and give the SEC a stronger footing to regulate the crypto market.

XRP Price Action

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Daily Chart

XRP hovered below the 50-day and 200-day EMAs, affirming the bearish price signals.

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

SEC vs. crypto case-related news needs consideration.

Conversely, an XRP drop below the trend lines could signal a fall toward the $0.48 handle.

The 14-day RSI reading, 50.40, suggests an XRP break above the $0.5739 resistance level before entering overbought territory.