XRP News Today: SEC Appeal Looms, Ripple Lawsuit Drama Continues

Bob Mason
Published: Mar 30, 2024, 05:08 GMT+00:00

Key Points:

  • XRP gained 0.93% on Friday, closing the session at $0.6305.
  • Scrutiny of SEC activity within the US crypto space contributed to the gains.
  • On Saturday, SEC-related chatter and SEC vs. crypto case-related news need consideration.
XRP News Today

In this article:

The Friday Overview

On Friday, XRP gained 0.93%. Following a 2.11% gain on Thursday, XRP ended the session at $0.6305.

SEC vs. Ripple and the IG Investigation

There was no SEC vs. Ripple case-related news for investor consideration on Friday. The SEC’s opening brief failed to spook investors despite the SEC pushing for Ripple to pay a $2 billion penalty.

The market remains focused on SEC plans to appeal the Programmatic Sales 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.

In October, Judge Torres rejected the SEC request for interlocutory appeal. The court ruling meant the SEC must wait until the end of the Ripple case before appealing against any court rulings.

XRP price action on July 13 highlighted the influence of the Programmatic Sales ruling and the SEC threat to appeal the court ruling. Investors brushed aside the court ruling that Ripple breached Section 5 of the 1933 Securities Act for XRP sales to institutional investors.

On July 13, XRP rallied to $0.9327 before a reversal to sub-$0.60.

Beyond the SEC vs. Ripple Case

The appeal process could extend the SEC vs. Ripple case into 2025. Significantly, SEC Chair Gensler risks pressure from Capitol Hill to change tact if there is a changing of the guard. The crypto community expects a Republican Party victory in November to end SEC Chair Gensler’s reign of regulation through enforcement.

William Hinman Remains a Central Figure

Between now and November, several other events could influence SEC progress toward reversing the Programmatic Sales ruling. An ongoing Inspector General (IG) investigation into crypto conflicts of interest within the SEC could unravel SEC plans to appeal against the court ruling.

Former SEC director William Hinman is central to the IG investigation. US government watchdog Empower Oversight instigated the IG investigation.

Empower Oversight alleges Hinman received millions of dollars from Simpson Thacher while guiding crypto policy-making at the SEC. Simpson Thacher was Hinman’s former employer and forms part of a group promoting Enterprise Ethereum. Hinman returned to Simpson Thacher after leaving the SEC.

In 2018, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities, influencing the price of BTC and ETH.

Hinman was also a central figure in the lead-up to the SEC vs. Ripple court rulings on July 13. According to SEC documents disclosed under court order, Hinman continued meeting with Simpson Thacher despite warnings from the SEC Ethics Division.

The timing of the SEC appeal could prove pivotal as lawmakers and the courts intensify scrutiny of SEC activity in the crypto space. Legislation could also be on the horizon. The CFTC move against KuCoin could incentivize US lawmakers to push through legislation and deliver regulatory boundaries to the SEC and CFTC.

SEC Activity in the Courts Under Scrutiny

On Friday, Ripple Chief Legal Officer Stuart Alderoty highlighted SEC activity within the crypto space, saying,

“7 years after the DAO report — which the SEC claims provided clarity to crypto — the SEC is still litigating 8 major crypto cases in federal courts with no end in sight. Something’s broken.”

It is unclear whether the court ruling in the SEC vs. Debt Box case impacts the SEC’s position as a crypto regulator.

In March, Judge Robert Shelby denied the SEC Motion to Dismiss the charges against Debt Box. The SEC filed the Motion to Dismiss in response to a court order in December asking the SEC to demonstrate why the court should not sanction SEC lawyers for making false and misleading representations to the court.

The IG investigation, the SEC vs. Debt Box case, and the SEC opening brief may give US lawmakers reason to look into SEC activity in the digital asset space. In February, Senator Cynthia Lummis and three other US Senators co-signed a letter to SEC Chair Gary Gensler regarding the SEC vs. Debt Box case. Significantly, the US senators threatened to investigate past and present SEC cases, saying,

“Regardless of whether Commission staff deliberately misrepresented evidence or unknowingly presented false information, this case suggests other enforcement cases brought by the Commission may be deserving of scrutiny. It is difficult to maintain confidence that other cases are not predicated upon dubious evidence, obfuscations, or outright misrepresentations.”

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 300324 Weekly Chart

Daily Chart

XRP held above the 50-day and 200-day EMAs, confirming the bullish price trends.

A return to the $0.65 handle would support a break above the $0.6609 resistance level. An XRP breakout from the $0.6609 resistance level could give the bulls a run at the $0.70 handle.

SEC activity-related news and SEC vs. Ripple case-related comments need investor consideration.

Conversely, a fall through the 50-day EMA could bring the 200-day EMA and the $0.5740 support level into play.

The 14-day RSI reading, 51.90, suggests an XRP move to the $0.70 level before entering overbought territory.

XRP Daily Chart affirms bullish price signals.
XRPUSD 300324 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP hovered above the 50-day and 200-day EMAs, affirming the bullish price signals.

A move through the Friday high of $0.6461 could give the bulls a run at the $0.6609 resistance level.

However, a fall below the 50-day EMA could bring the 200-day EMA and sub-$0.60 into play.

The 4-hourly RSI, with a reading of 53.08, indicates an XRP move to the $0.70 handle before entering overbought territory.

XRP 4-Hourly Chart reaffirms bullish price signals.
XRPUSD 300324 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.

Did you find this article useful?