XRP News Today: Speculation on SEC Appeal, XRP’s ETF Future Hangs in Balance

Bob Mason
Updated: May 22, 2024, 01:35 GMT+00:00

Key Points:

  • XRP gained 0.02% on Tuesday (May 21), ending the session at $0.5372.
  • Speculation about the SEC approving the first batch of ETH-spot ETFs opening the door to XRP-spot ETFs sent XRP to a session high of $0.5570.
  • On Wednesday, SEC vs. Ripple case-related chatter and crypto-spot ETF market updates need consideration.
XRP News Today

In this article:

The Tuesday Overview

On Tuesday (May 21), XRP gained 0.02%. Consolidating the 5.48% rally on Monday, XRP ended the session at $0.5372. Significantly, XRP revisited the $0.55 handle for the first time since May 6.

Speculation About an XRP-Spot ETF Market

Market speculation about the implications of a US ETH-spot ETF market influenced buyer demand for XRP. The SEC considers ETH and XRP securities. A willingness to approve ETH-spot ETFs despite ETH sitting in the securities box opens the door to an XRP-spot ETF market.

Nevertheless, the uncertainty about the result of the SEC vs. Ripple case remains an XRP headwind. Furthermore, SEC plans to appeal against the Programmatic Sales of XRP ruling likely influenced the XRP retreat from the $0.55 handle. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

Ripple expects a court decision on the penalty for breaching US securities laws in the coming months. The markets are bracing for an SEC appeal against the Programmatic Sales ruling at the end of the case. An appeal could extend the Ripple case into 2025 and give the SEC grounds to disapprove XRP-spot ETF applications.

SEC vs. Ripple Court Filings Highlight SEC Anti-Crypto Stance

On Monday (May 20), the SEC filed its response to the Ripple Motion to Seal. The SEC asked the court to deny Ripple’s request to seal financial and securities sales information because the documents constitute ‘judicial documents’ and form an integral part of the arguments in the remedies-related motions.

In the filing, the SEC argued,

“The SEC does not challenge the sealing of Ripple’s recent financial statements as a whole. But where financial figures or specific terms of contracts have been used by the parties to calculate and justify remedy requests, that information should be made public. And here, the need for public transparency is not some abstract principle. The general deterrence of a civil penalty rests on the public’s understanding of the facts supporting the penalty amount.”

The argument for transparency contrasted with SEC attempts to prevent internal SEC documents from becoming public. The SEC made at least six attempts to shield the William Hinman speech-related documents under attorney-client privilege.

William Hinman said that bitcoin (BTC) and ETH were not securities in 2018. The contentious issue with the speech was Hinman’s connection with Simpson Thacher, his former employer. Simpson Thacher is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

The Hinman speech-related documents revealed that Hinman continued meeting with Simpson Thacher despite warnings from the SEC Ethics Division.

An ongoing investigation into alleged crypto conflicts of interest within the SEC could scupper SEC plans to appeal against the Programmatic Sales of XRP ruling.

Office of Inspector General Investigation into SEC Conflicts of Interest

In February, US government watchdog Empower Oversight announced that the Office of Inspector General was in the final stages of investigating alleged crypto conflicts of interest within the SEC.

The crypto conflicts of interest relate to William Hinman and his relationship with Simpson Thacher. Empower Oversight filed a lawsuit against the SEC in 2021, claiming Hinman received millions of dollars from Simpson Thacher while working at the SEC.

The SEC may face intense lawmaker scrutiny if the investigation finds evidence of crypto conflicts of interest. Significantly, the SEC could end plans to appeal against the Programmatic Sales ruling to avoid retribution.

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

An end to SEC plans to appeal against the Programmatic Sales of XRP ruling could be a boon for XRP.

XRP Price Action

XRP Weekly Chart sends bearish near-term price signals.
XRPUSD 220524 Weekly Chart

Daily Chart

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

An XRP breakout from the 50-day EMA could give the bulls another run at the 200-day EMA. A break above the 200-day EMA could support a move to the $0.5739 resistance level and the $0.60 handle.

SEC vs. Ripple case-related news and crypto-spot ETF-related updates need consideration.

Conversely, an XRP fall through the trend lines could give the bears a run at the $0.48 handle.

The 14-day RSI reading, 53.71, suggests an XRP move through the $0.5739 resistance level before entering overbought territory.

Daily Chart sends bearish price signals.
XRPUSD 220524 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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