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XRP News Today: US Senators Highlight Unethical SEC Practices in Letter to Gensler

By:
Bob Mason
Published: Feb 9, 2024, 01:30 UTC

XRP remains in the hands of the SEC and plans to appeal against the Programmatic Sales ruling. However, increased scrutiny of the SEC could impact plans.

XRP News

Key Insights:

  • XRP rose by 0.19% on Thursday, closing the session at $0.5146.
  • US lawmaker scrutiny of the SEC offset investor jitters about an SEC appeal against the Programmatic Sales of XRP ruling.
  • On Friday, SEC v Ripple case-related news warrants investor attention as the two parties progress through remedies-related discovery.

The Thursday Overview

On Thursday, XRP rose by 0.19%. Following a 1.68% gain on Wednesday, XRP ended the session at $0.5146.

US Lawmakers Target the SEC and Unethical Practices

On Thursday, US lawmakers garnered investor interest for the second successive session.

SEC Chair Gary Gensler came under fire from US senators. Senators JD Vance, Thom Tillis, Bill Hagerty, and Cynthia Lummis sent SEC Chair Gary Gensler a letter regarding the recent SEC v Debt Box case.

Notably, the Senators highlighted the effects of the SEC case against Debt Box, stating,

“The restraining order froze the defendants’ personal and business assets, shut down DEBT Box, and caused its native token to crash by more than 56%. […] It is unconscionable that any federal agency – […] – could operate in such an unethical and unprofessional manner.”

The Senators also opened the door to a possible review of previous SEC v crypto cases, stating,

“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.”

On January 30, 2024, the SEC filed a Motion to Dismiss the charges against Debt Box. In an unusual setting, the SEC dropped the charges rather than undergo further scrutiny in court. In December 2023, the court ordered,

“The SEC to show cause why it should not be sanctioned for making false and misleading representations to the court.”

It is not the first time the SEC has faced scrutiny about unethical behavior.

In the ongoing SEC v Ripple case, former SEC Director Bill Hinman became the center of attention. SEC Director Hinman said Bitcoin (BTC) and Ethereum (ETH) were not securities in 2018.

The Hinman Documents and the SEC Ethics Team

The reference to ethereum was significant. Hinman previously worked for Simpson Thacher, part of a group that promotes Enterprise Ethereum. Hinman returned to Simpson Thacher after leaving the SEC.

In December 2021, US Government Watchdog Empower Oversight filed a lawsuit against the SEC. Empower Oversight alleged former SEC officials were biased against Ripple Lab and XRP. Notably, Empower Oversight also alleged that Hinman received millions of dollars from Simpson Thacher while supporting the SEC with oversight of the US crypto market.

The infamous Hinman speech-related documents revealed Hinman continued to meet with Simpson Thacher despite warnings by the SEC Ethics team.

Scrutiny of the events preceding the SEC filing charges against Ripple could significantly affect the case. Increased scrutiny could influence SEC plans to appeal against the Programmatic Sales of XRP ruling. The SEC may have trouble playing down the significance of the Hinman speech-related documents.

The SEC made at least six attempts to shield the Hinman speech-related documents under attorney-client privilege.

XRP Price Action

XRP Weekly Chart sends bearish price signals.
XRPUSD 090224 Weekly Chart

Daily Chart

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

A breakout from the $0.52 handle would bring the $0.5470 resistance level and the 50-day EMA into play. An XRP move through the 50-day EMA would give the bulls a run at the 200-day EMA.

US lawmakers and SEC v crypto case-related updates warrant investor attention.

However, a break below the $0.5042 support level would support a fall toward the $0.4700 support level.

The 14-day RSI reading, 42.28, indicates an XRP drop below the $0.49 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 090224 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP hovered above the 50-day while sitting below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.

An XRP return to the $0.52 handle would bring the 200-day EMA and the $0.5470 resistance level into play.

However, a drop below the 50-day EMA would give the bears a run at the $0.5042 support level.

The 4-hourly RSI, with a reading of 57.35, indicates an XRP move to the 200-day EMA before entering the overbought territory.

XRP 4-Hourly Chart sends bullish near-term price signals.
XRPUSD 090224 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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