XRP News Today: Ripple’s Legal Battle with SEC Takes Center Stage in Forecast Trends

Bob Mason
Updated: May 26, 2024, 02:18 GMT+00:00

Key Points:

  • XRP advanced 1.08% on Saturday (May 25), ending the session at $0.5419.
  • Investor sentiment toward the SEC U-turn on ETH-spot ETFs continued resonating.
  • On Sunday (May 26), crypto-spot ETF chatter and SEC vs. crypto case-related news need tracking.
XRP News Today

In this article:

The Saturday Overview

On Saturday (May 25), XRP advanced by 1.08%. Following a 1.38% gain on Friday (May 24), XRP ended the session at $0.5419.

SEC vs. Ripple: Remedies Ruling in Focus

There was no SEC vs. Ripple case-related news for investors to consider on Saturday. However, a court ruling on the penalty Ripple pays for breaching US securities laws will become a talking point.

In July 2013, Judge Torres ruled that Ripple breached US securities laws for selling unregistered XRP to institutional investors.

The SEC filed its remedies-related opening brief in March 2024, claiming that Ripple continued to breach US securities laws after the December 2020 complaint. Significantly, the SEC called for an almost $2 billion penalty and an injunction to stop Ripple from selling XRP to institutional investors.

Ripple responded to the opening brief, stating that XRP sales were to accredited investors or through ODL contract-based sales. According to the remedies-related opposition brief, ODL contracts prevent XRP holders from making profits or suffering losses, and most ODL business is outside the United States.

The view on ODL contract-based sales and XRP sales to accredited investors may decide the size of the penalty and if an injunction is appropriate. If Judge Analisa Torres deems ODL contract-based sales a breach of US securities laws, Ripple could face a $2 billion penalty and an injunction.

The court ruling will likely influence buyer demand for XRP. Nevertheless, SEC plans to appeal against the Programmatic Sales of XRP ruling could impact XRP price trends more. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

SEC Appeal Plans, ETH-Spot ETFs, and US Politics

The SEC has not given any signals that it will accept the Programmatic Sales of XRP ruling. If the SEC ends its plans to appeal against the Programmatic Sales of XRP ruling, XRP may have a free run at $1.00. On July 13, 2023, XPR struck a session high of $0.9327 before hitting the reverse on SEC plans to file an appeal.

Political pressures and the launch of US ETH-spot ETFs could affect SEC plans to appeal against the Programmatic Sales of XRP ruling.

Approvals of ETH-spot ETFs would leave ETH in the commodities basket and may give Ripple a firmer legal position to contest an appeal. Moreover, issuers could file applications for XRP-spot ETFs and argue the courts already classified XRP as a commodity when sold on exchanges.

Bloomberg Intelligence ETF Analyst James Seyffart suggested US President Joe Biden pressured the SEC into approving the 19b-4 applications. If Joe Biden did pressure the SEC into a U-turn, President Biden may also want the SEC to end its moves against crypto firms before the Presidential Election.

The crypto vote could decide the outcome of the 2024 US Presidential Election. In 2023, Coinbase (COIN) kickstarted a campaign to raise crypto awareness on Capitol Hill. The #StandWithCrypto campaign showed that 52 million Americans held crypto.

Ripple Chief Legal Officer Stuart Alderoty summed up the events from the week during an event in Florence, Italy, saying,

“Great conversations today in Florence at #SOU2024. The EU is focused on regulatory clarity (not regulation by enforcement) and after the week we’ve had state-side it’s good to see the US trying to catch-up!”

XRP Price Action

XRP Weekly Chart sends bullish longer-term price signals.
XRPUSD 260524 Weekly Chart

Daily Chart

XRP hovered above the 50-day EMA EMA while remaining below the 200-day EMA. The EMAs sent bullish near-term but bearish longer-term price signals.

An XRP move above the 200-day EMA would bring the $0.5739 resistance level into play. A break above the $0.5739 resistance level could support a return to the $0.60 handle.

SEC activity, crypto-spot ETF news, and SEC vs. crypto case-related chatter need consideration.

Conversely, an XRP drop below the 50-day EMA could give the bears a run at the trend lines.

The 14-day RSI reading, 56.14, suggests an XRP return to the $0.60 handle before entering overbought territory.

Daily Chart sends bullish near-term price signals
XRPUSD 260524 Daily 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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