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XRP News Today: SEC v Ripple Lawsuit Settlement Prospects and Forecast

By:
Bob Mason
Published: Mar 10, 2024, 06:03 GMT+00:00

Key Points:

  • XRP slipped by 0.05% on Saturday, ending the session at $0.6206.
  • Sentiment toward the ongoing SEC v Ripple case left XRP trailing the broader crypto market.
  • On Sunday, SEC v crypto case-related news and SEC chatter need consideration.
XRP News Today

In this article:

The Saturday Overview

On Saturday, XRP slipped by 0.05%. Following a 1.13% decline on Friday, XRP closed the session at $0.6206.

XRP bucked the broader market trend for the second session. The total crypto market cap gained 0.74%, ending the session at $2,522 billion.

Investor sentiment toward the ongoing SEC v Ripple case remained an XRP headwind.

SEC v Ripple: Investors Await OIG Findings

There were no SEC v Ripple case-related updates for investors to consider on Saturday. Investors continued to take profits at the $0.63 handle as Ripple and the SEC progressed toward filing remedy-related briefs. The SEC and Ripple will argue for and against a punitive disgorgement for selling unregistered XRP securities to US institutional investors.

Significantly, hopes of a settlement have faded. The SEC must file its remedy-related brief by March 22, with Ripple facing an April 22 deadline to file its remedy-related brief.

However, an Office of Inspector General (OIG) investigation into crypto conflicts of interest within the SEC could impact sentiment toward the SEC v Ripple case. Former SEC Director William Hinman is at the center of the investigation. In 2018, Hinman famously said bitcoin (BTC) and ether (ETH) are not securities, impacting XRP while driving buyer demand for ETH.

US government watchdog Empower Oversight informed the OIG of possible conflicts of interest. Empower Oversight alleges Hinman received millions of dollars from former employer Simpson Thacher while working at the SEC. Simpson Thacher is part of a group that promotes Enterprise Ethereum. Significantly, Hinman returned to Simpson Thacher after leaving the SEC.

Hinman speech-related documents disclosed in the SEC v Ripple case give credibility to the allegations. The documents revealed Hinman continued meeting with Simpson Thacher despite warnings from the SEC Ethics Division.

If the OIG finds the SEC acted inappropriately, the SEC may settle the Ripple case. A settlement would also end SEC plans to appeal the Programmatic Sales of XRP ruling.

In July 2023, Judge Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. XRP surged to a 2023 high of $0.9327 in response to the ruling. However, speculation of SEC plans to appeal against the Programmatic Sales ruling sent XRP to sub-$0.50.

XRP would likely react positively to a settlement.

While investors await findings from the OIG investigation, a court ruling in the SEC v Coinbase (COIN) case could also be pivotal.

SEC v Coinbase: Motion to Dismiss Ruling Pending

In August 2023, Coinbase filed a Motion to Dismiss (MTD) all SEC charges against Coinbase. Coinbase argued the SEC lacked the statutory authority to regulate crypto exchanges.

Judge Katherine Failla heard oral arguments in January 2024. Legal experts opined that Coinbase offered a better definition of an investment contract. Almost three months have passed since the court hearing, suggesting a ruling is imminent.

Amicus Curiae attorney and candidate for the US Senate in Massachusetts, John E Deaton, shared his views on the MTD. Deaton believes the SEC would settle the case against Ripple if the Court grants the Coinbase MTD.

A settlement could have wide-reaching implications. Significantly, a Coinbase victory and a settlement in the Ripple case could open the door to XRP-spot ETF applications. The SEC will unlikely approve XRP-spot ETF applications if there are plans to appeal the Programmatic Sales ruling.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 100324 Weekly Chart

Daily Chart

XRP hovered above the 50-day and 200-day EMAs, sending bullish price signals.

A break above the $0.6354 resistance level would support a move to the March 5 high of $0.6689. The $0.6354 resistance level rejected a return to the $0.64 handle for the third successive session on Saturday.

SEC v crypto case-related chatter, the OIG Investigation-related updates, and crypto-spot ETF-related news need consideration.

However, a drop below the $0.62 handle could bring the $0.5835 support level into view.

The 14-day RSI reading, 59.88, suggests an XRP break above the March 5 high of $0.6692 before entering overbought territory.

XRRP Daily Chart affirms bullish price signals.
XRPUSD 100324 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP held above the 50-day and 200-day EMAs, confirming the bullish price trends.

An XRP breakout from the $0.6354 resistance level would give the bulls a run at the March 5 high of $0.6692.

Conversely, a break below the 50-day EMA would bring the $0.5835 support level and the 200-day EMA into play.

The 4-hourly RSI, with a reading of 51.21, suggests a break above the March 5 high of $0.6692 before entering overbought territory.

4-Hourly Chart reaffirms bullish price signals.
XRPUSD 100324 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.

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