Advertisement
Advertisement

XRP News Today: SEC Appeals Loss, Boosts Ripple’s Case

By:
Bob Mason
Published: Apr 12, 2024, 02:48 GMT+00:00

Key Points:

  • XRP declined by 1.52% on Thursday, ending the session at $0.6087.
  • On Friday, SEC vs. crypto case-related news, crypto-spot ETF chatter, and SEC activity need investor attention.
  • News of the SEC losing a pivotal case in the US appellate courts shifts the dynamic in the ongoing SEC vs. Ripple case.
XRP News Today

In this article:

The Thursday Overview

XRP declined by 1.52% on Thursday. Reversing a 0.55% gain from Wednesday, XRP ended the session at $0.6087. Significantly, XRP underperformed the broader crypto market. On Thursday, the total crypto market cap fell by 0.79% to $2,526 billion.

On Wednesday, Uniswap (UNI) founder Hayden Adams alerted the crypto community about receiving a Wells notice from the SEC. XRP remains sensitive to SEC activity as the SEC v Ripple case draws investor attention.

Another SEC lawsuit against a crypto firm highlighted the SEC will continue to regulate through enforcement. SEC filings against crypto firms continue despite no clear US regulatory framework.

The crypto community stood behind Uniswap, scrutinizing the latest SEC move. Coinbase Chief Legal Officer Paul Grewal had this to say,

“Sometimes you have to laugh or else you’ll cry. Question: how can you square the SEC’s claim that Uniswap acts as a broker with the Court’s ruling against the SEC just a handful of days ago? Answer: you can’t.”

Uniswap Chief Legal Officer Marvin Ammori referenced a recent court ruling in the SEC v Coinbase case, saying,

“The Uniswap Protocol, web app, and wallet don’t meet the legal definitions of securities exchange or broker. Just weeks ago, the judge in SEC v. Coinbase dismissed the claim that crypto wallets were brokers – *even if* the tokens at issue were securities.”

In March, Judge Katherine Failla partially granted the Coinbase Motion to Dismiss (MTD). Judge Failla dismissed the charges against Coinbase Wallet. However, Judge Failla denied the motion to dismiss charges relating to Coinbase operating as an unregistered securities exchange.

While Uniswap grabbed the headlines, the SEC lost another important court ruling this week.

SEC vs. Ripple: US Case Law Tilts in Favor of Ripple

There were no SEC vs. Ripple case-related updates to consider on Thursday. However, an unrelated court ruling could strengthen Ripple’s arguments against a punitive penalty for breaching US securities laws.

Ripple Chief Legal Officer Stuart Alderoty shared the news of the ruling, saying,

“The SEC continues to lose. The Second Circuit Court of Appeals refused to reconsider their decision in Govil, which held that if a buyer suffers no financial loss, the SEC is not entitled to disgorgement from the seller.”

The ruling could impact the SEC attempt to pursue a $2 billion disgorgement in the Ripple case.

As background, the 2d Circuit Court (same as Ripple) ruled that the SEC may not ask for a crippling disgorgement award without proving that investors suffered actual financial harm.

The SEC loss in the appellate courts comes at a poignant time. Ripple must file its remedy-related opposition to the SEC opening brief by April 22. The SEC vs. Govil case will likely be one of several cases Ripple will cite.

In addition to demonstrating the financial harm or lack thereof, Ripple will also detail XRP sales to US and non-US institutional investors. In the opening brief, the SEC argued for a punitive penalty, stating Ripple continued breaching US securities laws after the 2020 complaint.

However, in Morrison vs. NAB, the US Supreme Court ruled that the SEC only has jurisdiction over US-based sales. The SEC did not indicate whether post-complaint XRP sales were to US or non-US institutional investors.

Additionally, if most pre-complaint XRP sales were to non-US institutional investors, US sales proceeds would be significantly less than the $770 million proceeds from total XRP sales.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 120424 Weekly Chart

Daily Chart

XRP remained above the 50-day and 200-day EMAs, affirming bullish price signals.

An XRP return to the $0.62 handle would support a move toward the $0.6609 resistance level. However, XRP must break down resistance at the April 9 high of $0.6424.

SEC vs. crypto-related updates warrant investor attention.

Conversely, falling through the 50-day EMA would bring the 200-day EMA and the $0.5740 support level into play.

The 14-day RSI reading, 49.70, indicates an XRP drop below the $0.5739 support level before entering oversold territory.

XRP Daily Chart affirms bullish price signals.
XRPUSD 120424 Daily Chart

4-Hourly Chart

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

An XRP move to the $0.62 handle would bring the April 9 high of $0.6433 into play. A break above the April 9 high could give the bulls a run at the $0.6609 resistance level.

However, an XRP fall through the 200-day and 50-day EMAs would give the bears a run at the $0.5739 support level.

The 4-hourly RSI, with a reading of 50.26, suggests an XRP return to the $0.70 handle before entering overbought territory.

XRP 4-Hourly Chart sends bullish price signals.
XRPUSD 120424 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?

Advertisement